AI companies now face a double-exposure problem. New state transparency laws aren’t just creating regulatory risk; they’re generating a detailed compliance record that plaintiffs and regulators can hold up against every public statement a company has ever made. In a recently published Law360 article, Cooley attorneys explain that the state AI law boom will require AI companies to “speak more often, more precisely and to more audiences about the same systems,” and that the volume and specificity of those compliance records creates a direct comparison risk against a company’s public narrative, including Securities and Exchange Commission filings, earnings calls, website claims and marketing materials.
Read the article to learn more about recently enacted AI disclosure laws, related enforcement actions and securities litigation, and practical steps to manage the risk of AI records diverging from other public statements.
Contributors
Tijana Brien
William K. Pao
Sean Quinn
Rebecca Kahn
Julian Piroli
