The Matrix

On June 9, 2026, a new law took effect in New York targeted at advertisements utilizing “synthetic performers,” including those generated by artificial intelligence (“AI”). Governor Kathy Hochul described the Synthetic Performer Disclosure Law (S.8420-A/A.8887-B) as a first-in-the-nation law that requires any advertisement featuring a “synthetic performer” to include a clear and conspicuous disclosure within the advertisement. The law amends New York General Business Law § 396-b and failure to comply will result in a penalty of $1,000 for a first violation and $5,000 for any subsequent violations.

A recent study by Gallagher Re, published in association with MIT and Testudo Global Inc., reveals a troubling reality for enterprises deploying artificial intelligence: traditional insurance policies are failing to cover AI-native liabilities, and the vendors supplying AI tools are structured to avoid bearing these risks. The Gallagher report, Smart Systems, Blind Spots: Rethinking Insurance for the AI Era , finds that the pace of AI adoption has outstripped the insurance industry's capacity to develop responsive products, leaving organizations exposed to a growing class of uninsured liabilities.

On May 19, 2025, President Donald Trump signed into law the bipartisan Take It Down Act, which is aimed at combating the distribution of nonconsensual intimate imagery, including both authentic and AI-generated “deepfakes.” The law was championed by Senators Ted Cruz and Amy Klobuchar, with support from a broad coalition including victim advocates, technology companies, and law enforcement groups. 

Privacy and data security laws and regulations continue to evolve quickly, and companies processing personal data have an increasing array of issues to manage. As we enter 2024, below are five key considerations for companies managing privacy and data security risks.

In April 2023, Kyland Young, a star from the popular reality TV show Big Brother, brought a right of publicity claim against NeoCortext, Inc., the developer of a deepfake software called Reface. See Young v. NeoCortext, Inc., 2:23-cv-02486 (C.D.CA filed Apr. 3, 2023). Young claimed that NeoCortext’s Reface, “which uses an artificial intelligence algorithm to allow users to swap faces with actors, musicians, athletes, celebrities, and/or other well-known individuals in images and videos,” violates California’s right of publicity law. Young’s case, which is still pending in the U.S. District Court for the Central District of California, raises important questions about deepfakes and their intersection with the law as it pertains to famous figures.

Since the arrival of AI programs like OpenAI’s ChatGPT, Google’s Bard, and other similar technologies (“Generative AI”) in late 2022, more programs have been introduced and several existing programs have been upgraded or enhanced, including ChatGPT’s upgrade to ChatGPT-4. Our previous posts have identified the features and functionality of Generative AI programs and outlined the emerging regulatory compliance requirements related to such programs. This post discusses how regulatory agencies worldwide have begun to address these issues.

Since late 2022, terms like “large language models,” “chat-bots,” and “natural language processing models” increasingly have been used to describe artificial intelligence (AI) programs that collect data and respond to questions in a human-like fashion, including Bard and ChatGPT. Large language models collect data from a wide range of online sources, including books, articles, social media accounts, blog posts, databases, websites, and other general online content. They then provide logical and organized feedback in response to questions or instructions posed by users. The technology is capable of improving its performance and otherwise building its knowledge base through its internal analysis of user interactions, including the questions that users ask and the responses provided. These AI programs have a variety of applications and benefits, but businesses should be aware of potential privacy and other risks when adopting the technology.

As seen from the recent release of the ChatGPT artificial intelligence (“AI”) tool, AI technologies have a major potential to transform society rapidly. However, the technologies also pose potential unique risks. Because AI risk management is a key component of responsible development and use of AI systems, the National Institute of Standards and Technology last week released its voluntary AI Risk Management Framework, which will be a helpful resource to assist businesses to responsibly incorporate AI into their processes, products and services.