"Curcio emphasized the importance of understanding the differences between 'closed pool' and 'open pool' AI systems, as these distinctions significantly impact confidentiality, data rights, and downstream risk."
"'Sneaky AI' refers to AI functionality that suddenly appears in a product that did not previously include it, while 'embedded AI' describes AI so integrated that users may not realize they are interacting with it."
"The 'AI accountability waterfall' concept illustrates how risk flows downstream, but responsibility often becomes less clear, especially when end users lack visibility into training data and model changes."
The rapid adoption of AI in commercial and government sectors is straining existing contracting frameworks. AI introduces unique terminology and risk allocation issues that contracts are beginning to address. Key distinctions include 'closed pool' versus 'open pool' AI systems, affecting confidentiality and data rights. Concepts like 'sneaky AI' and 'embedded AI' highlight the need for user awareness in governance. The 'AI accountability waterfall' illustrates how risk and responsibility become less clear as users lack visibility into training data and model changes.
Read at IPWatchdog.com | Patents & Intellectual Property Law
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