AI LinkedIn Series #2

Navigating the complexities of AI in business is increasingly crucial, and this "AI Lightbulb Series", published in April 2025, offers vital insights for tackling these challenges.

This series delves into key aspects of AI compliance, from understanding the implications of the EU AI Act for UK businesses to conducting thorough due diligence on AI systems. It addresses the importance of transparency in AI usage under GDPR, strategies to avoid copyright infringement with AI-generated content, and the nuances of data protection impact assessments….and more!

For businesses considering using AI language-processing tools within their business, this series provides guidance on the legal things to think about to ensure compliance and risks are mitigated.

For more information, including some free AI guides and other AI resources, check out my AI page on my website. If you would like more specific advice then get in touch here.

Q. Does my UK business need to comply with the EU AI Act? 📜

A. Your UK business need to comply with the EU AI Act if you:

✅ Use AI-powered tools that process personal data of individuals in the EU. 🔍✅ Rely on AI for hiring, credit checks, or decision-making that affects EU customers. ⚖️✅ Offer services that involve AI-assisted profiling or AI-assisted risk assessment in the EU. 🌍

Even if your business is based in the UK, it’s advisable to comply with the EU AI Act, especially if your business is online, since it may be accessed by EU users.For example, if you use an AI-powered chatbot that collects customer data from EU users, or an AI tool to assess loan applications, you may need to follow EU AI rules—including transparency, risk assessments, and data protection measures. 🔐Besides, the UK is likely to adopt similar legislation on AI so it’s a good idea to get your business ready.

#SmallBusinessAI #AIAutomation #AICompliance #DataProtection #EUAIACT #SmallBusiness #Freelancer #AITips Are you concerned about staying compliant when using AI?

The Aubergine Legal AI Toolkit (which has 13 helpful documents) navigates you through helpful checklists and provides necessary template policies, and inserts for your legal documents to ensure compliance with data protection and IP laws. Find out more - https://www.auberginelegal.co.uk/ai-legal-services

Q. How do I conduct due diligence on an AI system I want to use in my business?

A. Before using an AI tool in your business, it’s essential to check that it’s safe, legal, and ethical for your business.

When conducting due diligence you should:

✅ Research the AI system’s developer – Do they have a good track record and reputation? Are they known to comply with GDPR or other relevant laws? 🔬

✅ Understand decision-making – Can the AI explain how it reaches conclusions? Be cautious of “black box” systems that lack transparency. 🧐

✅ Assess bias risks – Does the AI treat all users fairly? Test it for potential biases, especially in hiring, credit decisions, or healthcare applications. ⚖️

✅ Assess accuracy - use external reviews, third-party evaluations, and even test the system yourself to verify reliability and accuracy. 🎯

✅ Review the Terms and conditions - Confirm liability & support, check for clear terms of use, indemnities, and customer support. 📜

Understand that due diligence should also be ongoing, especially when it comes to technology. Reevaluate your AI systems regularly to ensure they continue to align with your values and are not putting your business at risk.

#AICompliance #AIDueDiligence #ResponsibleAI #EthicalAI #AIForBusiness #DataPrivacy #GDPRCompliance #CyberSecurity #LegalTech #AIRegulationAre you concerned about staying compliant when using AI?

Q. Do I need to inform clients/customers when AI is being used? 🤐

A. This depends on what you’re using AI for.

Under GDPR, you must disclose the use of AI in your terms and conditions and privacy policy if it’s being used to process a client’s personal data or to automate decision-making. 📝

However, if you're using AI in the course of your work and it doesn’t expose your client to any risk then you’re not legally obligated to inform them (currently). For example, if you’re a virtual assistant using Grammarly to check your work for accuracy or using otter.ai to transcribe meeting recordings. In the interests of transparency though, it's probably a good idea to be upfront about AI use. 🤖

Your terms and conditions are a good place to disclose use of AI. Be clear and accurate about when and how AI might be utilised and clarify how you mitigate risk to the client.

Remember, any sharing of client/customer personal data with an AI is a breach of GDPR if they have not given express permission. 🛡️

Need to disclose use of AI in your terms and conditions or privacy policy? I can help you with that! Get in touch - https://www.auberginelegal.co.uk/contact

Q. How can I ensure I’m not infringing on copyright when using AI-generated content? 🎨🖌️A. AI-generated content might seem like a great way to produce content but it should be used with some caution. If the AI system was fed copyrighted material (like books, images, or online content), then the output could unintentionally echo protected work. This can also happen with AI-generated imagery as well as text.To reduce your risk, choose tools that are transparent about their training data and licensing terms.

A few tips to stay on the right side of copyright when using AI 👉

● Edit copy - Treat AI-generated content as a first draft and then adapt it to make it your own. Not only does this help to mitigate risk of copyright infringement but it will probably improve the copy and better align it with your brand. 👩🏽‍💻

● Don’t ask AI to recreate existing works, brand identities, or artistic styles.🛑

● Ask for source references where possible and check those sources to ensure there is no risk of copyright infringement 🔍

#AICopyright #AIContentCreation #ResponsibleAI #AIForBusiness #DigitalCompliance #CopyrightAwareness #EthicalAI #FreelanceLife #VirtualAssistant #CopyrightInfringement

Are you concerned about staying compliant when using AI?

Q. Can I use AI to process personal data under GDPR? 🛡️

A. Yes—but only if you meet GDPR requirements.

GDPR requires you to have a clear legal basis for processing personal data. The most common for businesses are consent, contract, or legitimate interests. You must only collect what is necessary.

You also need to tell people how their data will be used. If decisions are made solely by AI, individuals have the right to know. In many cases, they also have the right to request a human review.

If you're using AI for profiling, automated decision-making, or analysing sensitive data (like health info), the rules are stricter. You may need explicit consent or meet specific conditions under Article 9 of the GDPR.

Your privacy policy should explain that AI is being used, what kind of data it processes, and why. 📝

Using AI doesn't exempt you from data protection law. In fact, it means you need to apply them carefully and ensure your systems also adhere to GDPR.

Don’t forget, data privacy isn’t just about how and what data is collected. It also requires you to protect this data. 🔐

Unsure if your privacy policy covers your AI use?

Get in touch if your privacy policy needs reviewing and/or updating - https://www.auberginelegal.co.uk/contact #GDPR #AI #DataProtection #Privacy #DataCompliance #PrivacyPolicy #LegalContracts #BusinessLegal #BusinessCompliance

Q. Do I need to carry out a Data Protection Impact Assessment if I’m using AI to process personal data? 🤔

A. In many cases, yes. If your AI tool processes personal data in a way that could pose a high risk to individuals’ rights, a Data Protection Impact Assessment (DPIA) may be required under Article 35 of GDPR.

This includes situations where AI is used for:

● Automated decision-making that affects people (e.g., hiring, credit checks) ⚖️

● Monitoring or profiling individuals, especially on a large scale 👁️

● Processing special category data (like health data) 🧬

● Using new or untested tech where the risks aren’t fully known

Even if a DPIA isn’t required, it can be useful to help you identify risks and take steps to reduce them.

A DPIA should cover:

● What the AI system does and why you’re using it

● What data is being processed and how

● Potential risks to individuals

● How you’ll mitigate those risks

Carrying out a Data Protection Impact Assessment demonstrates your commitment to data protection and can help protect your business from regulatory or reputational issues.

#DPIA #GDPRCompliance #AIAndPrivacy #DataProtection #ResponsibleAI #PrivacyByDesign #AIForBusiness #RiskManagement #HealthTech #VirtualAssistant #SmallBusinessSupport #EthicalAI

Q. Might there be specific AI compliance requirements for my industry?

A. While general laws like GDPR or the EU AI Act apply broadly, many sectors have additional rules based on the type of data they handle and the risks involved.

For example:

● Healthcare - If your business handles health data - whether you’re a clinic, therapist, wellness coach, or VA supporting healthcare professionals - you’re dealing with special category data under GDPR. This means you’ll need to meet additional conditions under Article 9. You may also need to adhere to NHS-specific guidance if you work with or on behalf of NHS organisations. Using AI for things like appointment booking, triage, or patient communication should be assessed carefully, and a DPIA is often necessary. 🏥

● Finance and insurance sectors are often required to explain algorithmic decisions and prevent bias in automated systems. 💼

● Education, recruitment, and legal services may face extra scrutiny if AI is used in decision-making or to handle sensitive personal information. 🎓

If your AI tool affects people’s access to services, money, jobs, or healthcare, you’re more likely to fall under specific compliance obligations.

It’s a good idea to check with a sector regulator or professional body to understand what applies to you. ✅

#AICompliance #HealthData #GDPR #UKHealthcare #DigitalHealth #ResponsibleAI #DataProtection #EthicalAI #AIForBusiness #NHSCompliance #SmallBusinessSupport #VirtualAssistant #NHS #PrivatePractice

Q. Does using AI affect my business insurance?

A. Potentially, it can. Certainly, this is something to be mindful of going forward. After all, insurers are responsible for scrutinising risk to your business and assessing how you mitigate that. AI is likely to be a factor in the future if not already.

It would be wise to check with your insurance company whether they require disclosure of AI use. 💡

If your AI system causes an error, for instance, giving incorrect advice, misprocessing data, or making a biased decision, you could be liable. If you haven’t told your insurer that you’re using AI, that could affect your ability to make a claim. 🛡️

Some policies may not cover risks linked to automated decisions, IP infringement (from AI-generated content), or data breaches caused by third-party AI tools. 🔍

To stay protected:

● Inform your insurer if you're using AI tools.

● Check if your policy for any mention of AI-related risks.

● Keep records of how AI tools are used and monitored in your business.

#BusinessInsurance #AIProtection #BusinessRisk #AIForBusiness #AICompliance #RiskManagement #CyberLiability #ProfessionalIndemnity #ResponsibleAI #InsuranceTips #AIandLaw

Q. How might I fact-check AI data?

A. Many people are asking this and it’s really important because, whilst AI can assist with research, it should not be considered accurate by default. In fact, AI makes mistakes, misinterprets data, content and opinions and may serve you with dated information. Therefore fact-checking is essential.

Here are a few ways to help ensure accuracy when using AI in your work -

● Conduct your own research – Don’t rely on the AI’s answer alone. Use trusted sources to confirm key facts. 🔍

● Check the date – AI tools may not have access to recent events. If you’re writing about laws, trends, or data, always verify they're still current. 📅

● Ask for sources – Some AI tools can provide references. You can use these as a starting point for fact-checking and confirming the credentials of the sources. 📚

● Use your judgment – If something looks off or too good to be true, dig deeper. AI has been known to unintentionally hallucinate stats, quotes, and names. 🧠

Tip: Build a shortlist of go-to reliable sources in your industry so you can request your AI use these primarily. This way you can train your AI to conduct research the way that you might. It's still essential to fact-check - only this approach should make it faster to validate claims and streamline your workflow.💡

#FactChecking #AIForBusiness #ContentCreation #ResponsibleAI #VirtualAssistant #MarketingTips #AIAwareness #AIResearch #ContentCreation #DigitalTrust #AIContentTips

Q. Who is liable if my AI system makes a harmful mistake?

A. In most cases, you (your business) will be responsible.

Under UK law, using AI does not shift legal responsibility. If an AI tool you’ve chosen makes a harmful error, such as giving incorrect advice, breaching data protection rules, or causing financial or reputational damage, your business could be liable.

In some cases, you may have grounds to launch your own legal action against the AI tool’s developer if the system performs in a way that breaches its own terms and conditions. However, this may not affect your own liability as you are ultimately responsible for how third-party systems are used in your business.

Therefore, it’s important to:

● Choose reputable AI providers ✅

● Check contract terms, especially around liability and indemnity 📜

● Test tools before deployment 🔍

● Ensure you hold appropriate insurance 🛡️

If your AI system has made a harmful mistake it is important to seek legal advice as soon as possible, even if a complaint has not been made.AICompliance #AIForBusiness #Liability #ResponsibleAI #BusinessRisk #AIandLaw #UKBusiness #LegalResponsibility #SmallBusinessSupport #AIInBusiness #DigitalTrust

Q. How does AI regulation for business differ between the UK, EU, and US? 🌍

A. Regulation on AI is still emerging and, as with data protection, copyright laws and other business compliance there will be differences between counties.

● UK - Whilst the UK follows GDPR for data protection, the UK does not yet have specific AI laws. Businesses must comply with existing data laws, and the UK government is focusing on creating guidelines for AI risk management, ethics, and transparency. Meanwhile, it is wise to follow the EU AI Act in the meantime. 🇬🇧

● EU - The EU AI Act focuses on high-risk AI systems and imposes stricter rules for transparency, accountability, and data protection. It also places clear obligations on companies using AI in sensitive sectors like healthcare, finance, and recruitment. 🇪🇺

● US - The US has no federal AI laws yet, but regulation is more sector-specific. The focus is on data privacy laws, and some states are developing AI regulations, but there is no overarching national framework. Compliance is often industry-specific (e.g., health or finance). 🇺🇸

Many businesses are international and so will need to have a good understanding of differing laws. However, even if you do not consider yourself a global business, if you have a website you may find you need to adhere to regulations set by the counties your customers are visiting your website from, especially if you’re collecting data from them.

#AIRegulation #AIForBusiness #GlobalCompliance #GDPR #AIAct #UKAI #EUAI #USAI #BusinessCompliance #TechLaw #DataProtection #AIandLaw

Q. Can I use AI language-processing tools to create legal contracts for my business? 📜

A. You can, but you probably shouldn’t. Legal contracts are very important and if they're not considered fair, clear and suitably comprehensive they may not stand up to scrutiny. 🕵

Whilst it may be tempting to cut corners and save money on producing legal documents - such as terms and conditions, privacy policies, supplier contracts, etc, you should consider the risks.

Since legal language is precise and can vary greatly depending on your specific needs, AI tools should not replace professional legal advice. Additionally, legal compliance can change and an AI will not be able to let you know if your contracts need to be updated in accordance, whereas a trusted solicitor may be. They may also not be capable of customising legal documents for your specific business needs and may miss important clauses, such as indemnities, dispute resolution, or jurisdiction, which could be important in protecting your business.

AI may be able to assist you in making a plan for the documents your business may need but at some point, it is advisable to seek legal advice from an expert. ⚖️

#AIForBusiness #LegalTech #ContractCreation #AIandLaw #BusinessContracts #LegalAdvice #AIInBusiness #SmallBusinessSupport #LegalCompliance #ContractLaw #AIAndPrivacy #TechForBusiness

AI LinkedIn Series #2 - April 2025

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