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Gen AI Makes Legal Action Cheap — and Companies Need to Prepare

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Traditionally, legal actions have been time consuming, expensive, and distracting. Generative AI makes it easier — and cheaper — for customers, employees, competitors, and regulators to take legal action, at the same time that a turbulent geopolitical environment increases legal exposure.

Future legal risks will be legal fishing expeditions akin to internet “phishing” attacks: less personal, mass-produced actions initiated by many actors. When coordinated, they’ll be much more like distributed denial of service attacks, which involves overwhelming a target with a flood of traffic to knock it offline. To prepare for this new reality companies need to take a page out of cybersecurity readiness.

Specifically, they’ll need to quickly take action to better understand their vulnerabilities, emerging threats and their potential impact, the risk-mitigation actions they want to take, and their communication strategies to internal and external stakeholders.Last year, in order to enhance tax compliance, the U.S. Treasury Department proposed a rule designed to increase cryptocurrency disclosures.

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Gen AI Makes Legal Action Cheap — and Companies Need to PrepareTraditionally, legal actions have been time consuming, expensive, and distracting. Generative AI makes it easier — and cheaper — for customers, employees, competitors, and regulators to take legal action, at the same time that a turbulent geopolitical environment increases legal exposure.
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