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ARTICLE · 27 JANUARY 2025

Will AI Companies Lose Key Liability Protections Under New Regulations?

Scarinci Hollenbeck LLC
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The rapid growth of artificial intelligence (AI) has regulators scrambling to craft new laws to govern the technology. Businesses that develop AI solutions, as well as the companies that deploy them...

United StatesTechnology
Christopher D. Warren
Christopher D. Warren

The rapid growth of artificial intelligence (AI) has regulators scrambling to craft new laws to govern the technology. Businesses that develop AI solutions, as well as the companies that deploy them, should keep a close eye on regulatory developments.

Under a recent bi-partisan proposal, AI companies could lose key protections under Section 230 of the Communications Decency Act that other Internet companies enjoy. Separately, the attorneys general of several states are calling for a regulatory framework that addresses the risks associated with AI without hampering the development of trustworthy applications.

The proposed "No Section 230 Immunity for AI Act" seeks to clarify that Section 230 immunity will not apply to claims based on generative AI. The bi-partisan legislation was introduced by Senators Josh Hawley (R-Mo.) and Richard Blumenthal (D-Conn.), the Ranking Member and the Chair of the Senate Judiciary Subcommittee on Privacy, Technology, and the Law, on

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