As data has catapulted to a new and valuable business asset class, and as AI is increasingly used in business operations, the use of AI has created hidden data and IP risks. These risks must be identified and then measures must be taken to protect against both a loss of rights and an infringement of rights.

This column uses a series of hypothetical fact patterns to present illustrative examples of how problems can arise and the potential effects that result if they do. As discussed below, a particular risk is introduced when third-party vendors use their AI on their customer’s databases.