Posts Tagged: liable
Senate bill would hold AI companies liable for harmful content
Politicians think they have a way to hold companies accountable for troublesome generative AI: take away their legal protection. Senators Richard Blumenthal and Josh Hawley have introduced a No Section 230 Immunity for AI Act that, as the name suggests, would prevent OpenAI, Google and similar firms from using the Communications Decency Act's Section 230 to waive liability for harmful content and avoid lawsuits. If someone created a deepfake image or sound bite to ruin a reputation, for instance, the tool developer could be held responsible alongside the person who used it.
Hawley characterizes the bill as forcing AI creators to "take responsibility for business decisions" as they're developing products. He also casts the legislation as a "first step" toward creating rules for AI and establishing safety measures. In a hearing this week on AI's effect on human rights, Blumenthal urged Congress to deny AI the broad Section 230 safeguards that have shielded social networks from legal consequences.
In May, Blumenthal and Hawley held a hearing where speakers like OpenAI chief Sam Altman called for the government to act on AI. Industry leaders have already urged a pause on AI experimentation, and more recently compared the threat of unchecked AI to that of nuclear war.
Congress has pushed for Section 230 reforms for years in a bid to rein in tech companies, particularly over concerns that internet giants might knowingly allow hurtful content. A 2021 House bill would have held businesses liable if they knowingly used algorithms that cause emotional or physical harm. These bills have stalled, though, and Section 230 has remained intact. Legislators have had more success in setting age verification requirements that theoretically reduce mental health issues for younger users.
It's not clear this bill stands a greater chance of success. Blumenthal and Hawley are known for introducing online content bills that fail to gain traction, such as the child safety-oriented EARN IT Act and Hawley's anti-addiction SMART Act. On top of persuading fellow senators, they'll need an equivalent House bill that also survives a vote.
This article originally appeared on Engadget at https://www.engadget.com/senate-bill-would-hold-ai-companies-liable-for-harmful-content-212340911.html?src=rss
Engadget is a web magazine with obsessive daily coverage of everything new in gadgets and consumer electronics
Jury rules Elon Musk is not liable for shareholder losses after ‘funding secured’ tweets
Elon Musk is off the hook for his 2018 tweets claiming he had “funding secured” to take Tesla private for $ 420 a share. A jury found that Musk was not liable for Tesla investors’ losses, following a weeks-long trial in San Francisco.
The verdict is a major victory for Musk, who could have been liable for billions of dollars in damages. Musk had testified in federal court that just because he tweets something, it "does not mean people believe it or will act accordingly." He also argued that he could have used his shares of SpaceX to fund the deal.
The shareholders who brought the class action suit had argued that Musk’s statements about funding were false, and that they lost vast amounts of money due to stock fluctuations in the aftermath of Musk’s tweets. But while the judge in the case concluded that the tweets were "objectively false and reckless," the jury didn’t find that Musk had deliberately misled the public.
While the verdict ends the years-long saga of the “funding secured” tweets, the posts weren’t entirely without consequences for Musk. He settled with the Securities and Exchange Commission in 2018, and stepped down from his role as Tesla board chair as a condition of the settlement. Musk has long decried the SEC settlement and has said he was “forced to admit I lied to save Tesla’s life.”
In a statement to Bloomberg following the verdict, Musk's lawyer, Alex Spiro, said "the jury got it right." Musk also weighed in — naturally, via tweet — saying he was "deeply appreciative."
Thank goodness, the wisdom of the people has prevailed!
I am deeply appreciative of the jury’s unanimous finding of innocence in the Tesla 420 take-private case.
— Elon Musk (@elonmusk) February 3, 2023
Update 2/3 7:19 PM ET: Added Elon Musk's tweet about the verdict.