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Artificial intelligence and machine learning technology is driving important new business opportunities across a growing number of industry sectors, including consumer goods and retail (CG&R). Many CG&R companies are looking into how AI can enhance their business processes and customer interactions and with generative AI and the arrival of ChatGPT, the scope for application is staggering.

Explore Key Tenets of Responsible AI Use

Where can AI be used?

AI usage

The landscape of AI legislation

Pioneering AI

Risk of pricing algorithms

  • CG&R companies who used automated pricing should be prepared to handle concerns over whether such algorithms may lead to an anticompetitive environment, as or potential bias due to flawed datasets.
  • CG&R companies must be wary of relying purely on algorithms to set prices. This may lead to price-surging during times of high demand, but can also lead to a loss of trust and goodwill among consumers if it results in pricing some out of the market entirely.

Managing data and protection against cyber attacks Ensuring transparency and explainability AI governance regime considerations

  • CG&R companies should pay attention to data used to train their AI systems to avoid creating new entry points for hackers to attack, as well as ensuring that any sensitive personal data contained within datasets is subject to additional levels of protection.
  • Required security of training AI data is twofold — companies must be able to ensure not only that the data cannot be stolen or accessed by unauthorized parties, but also that it cannot be added to by unauthorized parties to ensure the continued integrity of the AI’s decision-making.

Ensuring transparency and explainability

  • Transparency and explainability are key elements for ensuring that consumers trust an AI system’s insights, understand when they are engaging with an AI, and can challenge the outcomes and decisions of the AI system. This can help brands decrease the risk of error and misuse of AI.
  • CG&R companies making use of AI that interacts with consumers should disclose when AI is being used and be prepared to explain any automated and algorithmic decisions and any associated data driving those decisions.

AI governance regime considerations

This rapidly evolving area has a great deal of international legislative development in progress. Companies should ensure internal policies and guidelines comply with the latest regulations and guidelines.

Ethical AI infographics

Explore more key areas around the responsible use of AI

AI predictive toolsAI predictive tools leading to racial profiling or other bias   AI ecosystemIncreasing inclusion in the AI ecosystem
AI futureproofingFutureproofing for generative AI   Ecomms recommendationE-commerce recommendation systems

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Interested in a bespoke conversation on how the shifting landscape of AI legislation and guidance affects your business? Reach out to any of the contacts listed below to discuss further.

Author

Sue specialises in technology and had been advising on technology projects for over 20 years. She advises clients (both customers and vendors) on a wide range of technology matters, including outsourcing, cloud, digital transformation, technology procurement, development and licensing, m/e-commerce, AI, blockchain and data privacy. Sue also advises on the commercial, technology and intellectual property aspects of M&A transactions and joint ventures. Her clients include some of the world's best known tech companies and multinational corporations. She also enjoys working with emerging and growth companies. Sue is the Firm’s co-chair of the EMEA Financial Services Industry Group and co-chair of the Firm's UK FinTech practice. Sue was named TMT Lawyer of the Year at the Euromoney Women in Business Law Awards 2019.

Author

Ashlin Perumall is a Partner in Baker McKenzie's Corporate and M&A Practice Group in Johannesburg. He has acted for local and multinational companies in a wide range of corporate matters. Ashlin specializes in technology-driven M&A and the corporate, commercial and transactional aspects of intellectual property. Ashlin is currently serving as a Baker McKenzie Fellow to the World Economic Forum's Centre for the Fourth Industrial Revolution in San Francisco as part of the Firm's partnership with the forum to address global, regional, and industry policy issues in respect of 4IR technologies.

Author

Roberto Grané is a transactional and regulatory partner in Baker McKenzie’s Buenos Aires office. He has been recognized as a leading practitioner by Chambers Latin America. Clients benefit from his more than 20 years of extensive domestic and international experience. Prior to joining Baker McKenzie, Roberto served as in-house counsel to one of the major telecommunications companies in Argentina, and a law clerk with the Civil Courts of Buenos Aires. He is a professor of contract law at the Buenos Aires University and a visiting professor in several local universities.

Author

Alex is a local principal in the Intellectual Property & Technology Practice Group in Baker McKenzie Wong & Leow with over 13 years of experience. Alex is a Certified Information Privacy Professional (CIPP/EU) by the International Association of Privacy Professionals (IAPP), a certified AI Ethics and Governance Professional by the Singapore Computer Society and a member of the Cybersecurity and Data Protection Committee of the Law Society of Singapore. He holds a master's in law, science and technology from Stanford University.

Author

Cynthia Cole is an Intellectual Property Partner in Baker McKenzie's Palo Alto office, as well as a former CEO and General Counsel. Before joining the Firm, Cynthia was Deputy Department Chair of the Corporate Section in the California offices of Baker Botts where she built the technology transactions and data privacy practice. An intellectual property transactions attorney, Cynthia also has expertise in digital transformation, data privacy, and cybersecurity strategy. She advises clients across a wide range of industries including Technology, Media & Telecoms, Energy, Mining & Infrastructure, Healthcare & Life Sciences, and Industrials, Manufacturing & Transportation. Cynthia has deep experience in complex cross-border, IP, data-driven and digital transactions, creating bespoke agreements in novel technology fields. She acts as outside general counsel to a number of executive teams and boards of directors.

Author

Adam Aft helps global companies navigate the complex issues regarding intellectual property, data, and technology in M&A and technology transactions. He is the lead of the Firm's North America Technology Transactions group and co-leads the group globally. Adam also served as a law clerk to the Honorable Leslie H. Southwick of the US Court of Appeals for the Fifth Circuit and the Honorable Theresa L. Springmann of the US District Court for the Northern District of Indiana.

Author

Julia is Of Counsel in the Intellectual Property department of Baker McKenzie London. She joined Baker McKenzie as a trainee in 2003. She qualified into the IP Group in March 2005, after completing a secondment in the IP Group at Baker McKenzie’s Sydney office.

Author

Eva-Maria Strobel is a partner in Baker McKenzie's Zurich office. She is a member in the Firm's global IPTech Practice Group, chairs the EMEA IPTech Practice Group and heads the Swiss IPTech team. Eva-Maria is admitted to the bars in Switzerland and Germany, and worked in the Firm's Frankfurt office prior to relocating to Zurich. Legal 500, Chambers, WIPR, Managing IP and WTR 1000 praise Eva-Maria as one of the leading trademark lawyers in Switzerland.

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