Artificial Intelligence (AI)

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Introduction

On Thursday, March 20, a federal judge in the Northern District of Illinois granted final approval to a settlement agreement under which Clearview AI (Clearview) agreed to pay an estimated $51.75 million to a nationwide class if one of several contingencies takes place. This approved settlement agreement resolves In Re: Clearview AI, Inc. Consumer Privacy Litigation, No. 1:21-cv-00135 (N.D. Ill.), a multidistrict suit alleging that the company’s automatic collection, storage, and use of biometric data violated various privacy laws, including Illinois’ Biometric Information Privacy Act (BIPA). The unorthodox settlement not only preserves Clearview’s business model, but may also insulate Clearview from subsequent or parallel regulatory investigations without requiring the company to jeopardize the liquidity necessary for continued growth. Ultimately, this settlement seems to represent a good outcome for the company, especially in light of the fact that that it was achieved over the objections from 23 state attorneys general (AG). U.S. District Judge Sharon Johnson Coleman stated that the settlement is fair, reasonable, and adequate.

On February 4, the Office of the Minnesota Attorney General (AG) released its second Report on Emerging Technology and Its Effect on Youth Well-Being, outlining the effects young Minnesota residents allegedly experience from using social media and artificial intelligence (AI). The report highlights alleged adverse effects that technology platforms have on minors and claims that specific design choices exacerbate these issues.

State attorneys general (AGs) continue to play a pivotal role as innovators, shaping the regulatory environment by leveraging their expertise and resources to influence policy and practice. The public-facing nature of AG offices across the U.S. compels them to respond to constituent concerns on abbreviated timetables. This political sensitivity, combined with the AGs’ authority to address both local and national issues, underscores their significant influence in the current regulatory environment.

In a recent interview, Karen White, the executive director of the Attorney General Alliance (AGA), discussed the organization’s impactful partnership with PBS, its involvement in the Bipartisan Leadership Project, and its proactive stance on artificial intelligence (AI). Originally a regional group, the AGA has grown into a significant force addressing complex issues through bipartisan collaboration and innovative partnerships.

Published in Law360 on January 22, 2025. © Copyright 2025, Portfolio Media, Inc., publisher of Law360. Reprinted here with permission.

In the first installment of this two-part article, state attorneys general across the U.S. took bold action in 2024 to address what they perceived as unlawful activities by corporations in several areas, including privacy and data security, financial transparency, children’s internet safety, and other overall consumer protection claims.

On January 9, New Jersey Attorney General (AG) Matthew J. Platkin and the Division on Civil Rights (DCR) launched a new Civil Rights and Technology Initiative aimed at addressing the potential for discrimination and bias associated with artificial intelligence (AI) and other decision-making technologies. The announcement is one of many recent examples of AG’s leading the development of AI regulation. The New Jersey initiative is informed by recommendations from Governor Phil Murphy’s Artificial Intelligence Task Force, which emphasized the need for public education on bias and discrimination related to AI deployment.

As one of her last acts in office, on December 24, 2024, Oregon Attorney General (AG) Ellen Rosenblum issued guidance for businesses deploying artificial intelligence (AI) technologies. The guidance highlights the risks associated with the commercial use of AI, and underscores that, despite the absence of a specific AI law in Oregon, a company’s use of AI must still comply with existing laws.

On September 23, Principal Deputy Assistant Attorney General Nicole M. Argentieri announced that the U.S. Department of Justice (DOJ) updated its guidance on the Evaluation of Corporate Compliance Programs (ECCP). The DOJ’s ECCP serves as a roadmap for federal prosecutors to use when evaluating the effectiveness of corporate compliance programs. Therefore, companies should also pay close attention to this guidance when reviewing their compliance programs. Ultimately, a company’s efforts to design, regularly evaluate, and update its compliance program in line with this guidance could inform criminal investigations, charging decisions, and case resolutions.

Published in Law360 on September 27, 2024. © Copyright 2024, Portfolio Media, Inc., publisher of Law360. Reprinted here with permission.

On Sept. 18, Texas Attorney General Ken Paxton announced a settlement with healthcare technology company Pieces Technology pursuant to the Texas Deceptive Trade Practices-Consumer Protection Act.