Artificial intelligence (AI) is transforming how businesses operate, from automating customer service to optimizing supply chains and even drafting contracts. But with innovation comes legal complexity. Knowing when to involve legal counsel can mean the difference between leveraging AI safely and facing costly consequences.

Here are key moments when a business should call a lawyer while using AI:

1. Before Deploying AI Tools

Whether you're integrating a chatbot, predictive analytics, or generative AI, legal review is essential before deployment. Counsel can help assess:

• Contractual obligations with vendors or platforms
• Data privacy compliance (especially under laws like GDPR, CCPA, and HIPAA)
• Intellectual property risks, including ownership of AI-generated content

2. When Handling Sensitive or Regulated Data

AI systems often rely on large datasets, which may include personal, financial, or health information. Legal guidance ensures:

• Proper data governance policies
• Compliance with sector-specific regulations
• Risk mitigation for data breaches or misuse

3. If You're Training AI on Proprietary or Third-Party Content

Training AI models on internal documents or third-party materials raises questions about:

• Copyright infringement
• Trade secret exposure
• Licensing agreements

A lawyer can help structure training practices to avoid IP violations and protect confidential information.

4. When AI Outputs Are Used in Decision-Making

If your business uses AI to make decisions about hiring, lending, or customer eligibility, legal counsel can help evaluate:

• Bias and discrimination risks
• Fairness and transparency obligations
• Compliance with civil rights laws and consumer protection statutes

5. During Contract Negotiations Involving AI

Whether you're buying, selling, or licensing AI technology, legal review is crucial to:

• Define liability and indemnification
• Clarify ownership of outputs
• Ensure performance standards and audit rights

6. If Something Goes Wrong

From faulty outputs to reputational damage, AI-related incidents can trigger legal exposure. Call a lawyer immediately if:

• You suspect algorithmic bias or harm
• There's a data breach or regulatory inquiry
• You're facing litigation or enforcement action

Final Thoughts

AI offers immense potential, but it’s not without legal landmines. Involving legal counsel early and often helps businesses innovate responsibly, protect their assets, and stay ahead of regulatory developments.

If your business is exploring or expanding its use of AI, now is the time to build a relationship with legal counsel who understands both the technology and the law.