AI Under Scrutiny: Launching a Proof of Concept for Innovative Technology

As organizations venture into the world of Artificial Intelligence (AI), they often face challenges regarding the suitability and real-world value of specific AI tools. To mitigate risks, many choose to conduct a Proof of Concept (POC), a limited-scope project aimed at testing an AI tool’s efficacy for a particular business problem. While POCs are considered low-risk in theory, they can involve significant legal and non-legal concerns, particularly relating to data privacy, intellectual property, AI bias, and contractual obligations. Organizations must ensure they address issues such as data minimization, lawful processing, and potential bias in outcomes to avoid legal repercussions. Moreover, unrealistic expectations, poor data quality, and change resistance can hinder POC success. Therefore, legal oversight is essential from the outset to navigate regulatory scrutiny and minimize risks. Engaging legal expertise can ultimately save organizations from costly disputes in their AI initiatives.

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