The rise of generative artificial intelligence (AI) has raised questions about traditional intellectual property (IP) rights according to Bird & Bird senior associate Jessica Laverty.
Generative AI is capable of generating text, images, videos or other data through specialised prompts. The technology learns the patterns and structures of inputted data to generate new data that has similar characteristics.
Laverty shared her concerns at the Global Sourcing Expo Sydney last month, in a seminar titled AI Risks and Opportunities in Retail alongside two other associates at the Bird & Bird firm.
Over the course of the one-hour seminar, the group discussed the increasingly prevalent role that generative AI is playing in the retail sector, including across product development, descriptive writing, marketing projects, product and service design and customer support chatbots.
“Retailers are also using other forms of AI to assist with supply chains and logistics through real-time demand forecasting and stock management,” Laverty said.
“However, the opportunities unlocked by AI must still be balanced against risks such as copyright infringement and data protection concerns.”
The Sydney-based lawyer confirmed that in Australia, AI - including generative AI - is regulated by existing legislation covering consumer rights, data protection, competition, and copyright.
“Although there is no specific AI legislation, the Australian Government encourages responsible AI deployment,” Laverty said.
“One way that organisations can achieve this is by following Australia’s voluntary AI Ethics Framework. They are establishing a Select Committee on Adopting Artificial Intelligence and have allocated $39.9 million towards AI technology development over the next five years.”
Alongside the above political measures, Australia also has a robust Privacy Act, which Laverty said sets out several Australian Privacy Principles (APPs). The APPs apply to all Australian organisations and businesses and govern the collection and use of personal data.
Speaking on IP issues in particular, Laverty said an increasing number of content creators are becoming concerned about the misuse of their material by generative AI tools.
“For retailers to avoid potential copyright infringement claims, they need to ensure that their AI training data derives from unlicensed content,” she said. “AI-generated content should also ideally include information about its origin and the sources used in training.”
Retailers using generative AI need to be diligent about compliance with intellectual property laws, ensure “clean” training data, and develop ways to demonstrate the provenance of generated content.
For best practice, Laverty said businesses must establish robust AI policies for their employees with clear prohibitions and guardrails, with employees receiving regular training around the use of AI tools in line with said policy.
“As AI continues to evolve, legal frameworks are beginning to adapt to address these complex issues,” she said.
“Retailers who wish to integrate AI tools into their business must carefully review the terms and conditions of their AI tool of choice to mitigate any potential legal risks and consult with a legal professional as needed to ensure compliance.”
Laverty then shared five key considerations that all retailers must keep in mind, including transparency in how consumer data is used, ensuring the collection of personal information is lawful and fair, and examining whether the generative AI systems uses or discloses personal information for secondary purposes.
She also highlighted that retailers must safeguard the security of personal information stored in the system and follow proper procedures for destruction or de-identification, as well as establishing a mechanism for handling requests by individuals for the access or correction of personal information held in the AI system.
“The Global Sourcing Expo’s Sourcing Seminar Series is intended to give industry professionals who work across all stages of the global sourcing supply chain practical resources to navigate their sourcing journey,” Global Sourcing Expo organiser and International Expo Group CEO Marie Kinsella said.
“Emerging technology tools such as AI are a major focus area for many of our attendees and following the overwhelmingly positive reception to the Bird & Bird seminar, we look forward to revisiting the topic of AI at the upcoming Melbourne Global Sourcing Expo this November.”
The next edition of the Global Sourcing Seminar Series will take place at the Melbourne Convention & Exhibition Centre from November 19-21, 2024.