20 October 2023

Generative AI: Opportunities, Threats, And Legal Considerations

Logan & Partners


Logan & Partners is a Swiss law firm focusing on Technology law and delivering legal services like your in-house counsel. We are experts in Commercial Contracts, Technology Transactions, Intellectual Property, Data Protection, Corporate Law and Legal Training. We are dedicated to understanding your industry and your business needs and to deliver clear and actionable legal services.
In the bustling streets of European cities, behind the screens of tech hubs in Berlin, Paris, and Stockholm, a new technological marvel is taking shape: Generative AI.
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In the bustling streets of European cities, behind the screens of tech hubs in Berlin, Paris, and Stockholm, a new technological marvel is taking shape: Generative AI. As businesses across the continent explore the potential of this technology, understanding its legal implications is a must. What is special about Generative AI? What legal concerns does it bring? Let's explore this transformative technology and its implications in the European landscape.


Generative AI refers to systems that can generate new content, be it text, images, music, or even complex data patterns. Unlike traditional AI models that predict or classify based on existing data, generative models produce new data, often indistinguishable from human-generated content. This may prove helpful for novel problem-solving and contribute to R&D in various industries.


While traditional AI systems are designed to analyse and interpret data often on predefined rules, Generative AI takes a step further by creating new data. This distinction is crucial, especially when considering intellectual property rights, data protection, and potential misuse.


  • Healthcare: from simulating drug interactions to predicting patient responses, Generative AI can revolutionise medicine.
  • Entertainment: the creation of music, art, and even movie scripts can be enhanced and expedited using generative models.
  • Manufacturing: designing new materials, optimising production processes, and predictive maintenance are just a few examples of applications in this domain.


  • Confidentiality: Generative AI applications do not necessarily provide adequate security and confidentiality commitments, and their usage may result in security and confidentiality breaches.
  • Data privacy: Generative AI models, being trained on an extensive amount of data, pose risks to data privacy and protection. For instance, the lawfulness of such data use might be challenged.
  • Intellectual property: AI-generated content risks infringing the rights of copyright holders, exposing businesses to legal claims. On the other hand, businesses may not enjoy copyright protection for their AI-generated outputs.


In addition to existing regulations related to data protection and intellectual property, the proposed Artificial Intelligence Act (AIA) is set to address various AI applications, including Generative AI. The AIA emphasises transparency, accountability, and the ethical use of AI, with stringent penalties for non-compliance.


  • Review terms of use: before deploying any Generative AI application, thoroughly review the terms under which it is provided, including restrictions on how the AI-generated output can be used and the provider's rights over your inputs.
  • Data protection compliance: ensure that all AI applications, including generative models, are compliant with data protection regulations.
  • Intellectual property clearance: use AI applications that are trained on data legally obtained with the necessary licenses and permissions in place.
  • Establish clear guidelines: formulate and adhere to clear guidelines when using AI-generated content, especially if you use it in your company's own products or services.
  • Monitor applicable laws: regularly monitor and review applicable laws, directives, and guidelines to ensure that your AI practices remain compliant and adapt to any new legal requirements or changes.


We have been working with innovative companies across various industries for years, helping them protect their businesses, establish compliance capabilities to address new EU regulations affecting their operations, and assist in monitoring and implementing updates for ongoing compliance. Are you looking to securely implement AI in your business within the EU framework? Reach out to us for a free 20-minute chat.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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