Mealey's Artificial Intelligence
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July 10, 2024
Insurer Disputes Coverage For BIPA Suits Over Food Phone Orders Handled By AI
CHICAGO — A businessowners insurer filed suit in an Illinois federal court seeking a declaratory judgment that it owes no coverage for two underlying putative class action lawsuits alleging that its insured and two franchise restaurants violated the Illinois Biometric Information Privacy Act (BIPA) when they used the insured’s voice artificial intelligence technology to handle phone orders from customers.
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July 09, 2024
Investor Appeals Vice Chancellor’s Dismissal Of Suit For Lack Of Presuit Demand
WILMINGTON, Del. — An investor who brought a derivative complaint alleging that a telecommunications company failed to prevent its parent company’s scheme to centralize customer data to train artificial intelligence appealed to the Delaware Supreme Court a state vice chancellor’s decision dismissing the complaint after finding that the shareholder failed to show that making a demand on the board would have been futile.
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July 08, 2024
OpenAI, New York Times Debate Discovery Of Reporters’ Notes In AI Copyright Suit
NEW YORK — In letter briefing, the New York Times Co. (NYT) and OpenAI battle over whether copyright claims linked to artificial intelligence ChatGPT’s alleged reproduction of news articles permit discovery into reporters’ notes and associated materials underlying the stories.
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July 05, 2024
Microsoft, OpenAI Defend Need For Consolidation Of Media AI Suits
NEW YORK — Companies at the heart of suits over artificial intelligence urged a federal judge in New York in July 3 reply briefs to consolidate two cases brought by various newspapers and grant additional time for discovery required by the sprawling nature of the allegations.
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July 03, 2024
Constructive Trust Claims Deadline Set In Liquidation Of Vesttoo And Affiliates
WILMINGTON, Del. — In the Chapter 11 liquidation of Vesttoo Ltd. and its dozens of affiliates, a Delaware federal bankruptcy judge set a July 22 deadline for asserting constructive trust claims and overruled the liquidating trustee’s objection regarding compensation for special counsel retained by the debtors.
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July 02, 2024
Appeal Over Confirmation Of Vesttoo’s Liquidation Is Voluntarily Dismissed
WILMINGTON, Del. — An appeal of the order confirming the Chapter 11 plan of liquidation for Vesttoo Ltd. and its dozens of affiliates has been voluntarily dismissed pursuant to a joint stipulation.
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June 26, 2024
Music Industry Entities Sue Pair Of AI Companies Over Copying Of Recordings
NEW YORK — Two companies trained artificial intelligence on decades’ worth of copyrighted sound recordings with “rapid and devastating” effect, various music industry entities claim in a pair of June 25 complaints filed in Massachusetts and New York federal courts, warning that the technology presents both “promise and peril.”
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June 25, 2024
Music Industry’s AI Suit Will Play In California After Transfer
NASHVILLE, Tenn. — Music publishers sued a California-based artificial intelligence company in Tennessee and must live with the fact that they have not shown that the fact that the company employs a few individuals who chose to work from home in Tennessee satisfies the jurisdiction hurdle, a federal judge in Tennessee said June 24.
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June 21, 2024
Woman Drops Claims Game Makers Used AI To Addict Minors
EAST ST. LOUIS, Ill. — A woman voluntarily dismissed claims against Roblox Corp. and other video game companies that she claimed hooked minors on video games through the use of artificial intelligence (AI). Briefing on a motion to dismiss and a second motion for sanctions was pending in the federal court in Illinois at the time.
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June 21, 2024
German Companies Claim Microsoft Infringed Patents Through Its AI Infrastructure
MARSHALL, Texas — Microsoft Corp. infringed three patents by using certain computing systems that allow for artificial intelligence (AI) computer programs to run more efficiently, two German companies allege in a complaint filed in Texas federal court.
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June 19, 2024
Judge Rejects AI Hiring Firm’s Attack On Class Jurisdiction Ruling
CHICAGO — An artificial intelligence hiring platform’s contacts in Illinois satisfy Ford Motor Co. v. Mont. Eighth Jud. Dist. Ct. and provide for jurisdiction in the state, a federal judge said June 18 in denying a motion for reconsideration of a ruling denying a motion to dismiss.
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June 19, 2024
Microsoft Joins OpenAI’s Call For Consolidation Of Media AI Suits
NEW YORK — Microsoft Corp. joined in various OpenAI entities’ motion to consolidate a suit brought by eight news organizations challenging outputs from the ChatGPT artificial intelligence and its associated programs with a similar suit filed by The New York Times Co., saying in its joinder brief filed in a federal court in New York that doing so will combine suits that challenge similar technologies.
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June 19, 2024
SEC Says Founder Of AI Hiring Company Lied To Investors About Capabilities
NEW YORK — The founder and former chief executive officer of an artificial intelligence company that claimed to use AI capabilities to help companies hire better candidates issued materially misleading statements regarding the AI’s capabilities and how many customers it had and falsified both bank statements and customer testimonials to raise investor funds, the Securities and Exchange Commission says in a suit filed in a New York federal court.
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June 18, 2024
AI Identification Of Child Pornography At Issue In Police Search Case
WAUKESHA, Wis. — An internet company’s artificial intelligence’s flagging of a social media video as suspected child pornography didn’t give a detective sufficient grounds to view the video, and a judge properly excluded the resulting search of a cellphone, a criminal defendant tells a Wisconsin appellate court in defending exclusion of the evidence against him.
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June 17, 2024
Plaintiffs Won’t Amend Privacy Action Involving ChatGPT After Dismissal
SAN FRANCISCO — Plaintiffs confronted with a court ruling finding their privacy and California unfair competition law (UCL) action involving artificial intelligence raises policy concerns more appropriate in a town hall than a courtroom told a federal judge in California on June 14 that they will not amend their complaint and asked the court to close the case.
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June 17, 2024
Media Company May Update AI Suit With More Specificity, Federal Judge Says
NEW YORK — The Intercept Media Inc. may amend its artificial intelligence copyright complaint to address “seeming lack of specificity” in the action, a federal judge in New York said, noting that he will consider existing briefing on a motion to dismiss as targeted to the amended filing and will rule quickly after the filing of supplemental briefing.
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June 13, 2024
Elon Musk Dismisses Suit Claiming OpenAI Abandoned Principles
SAN FRANCISCO — Elon Musk filed paperwork asking a California court to dismiss his suit against OpenAI Inc. and Samuel Altman with a motion pending in which the defendants urged the court to dismiss the claims because Musk, the former company founder, cannot sustain California unfair competition law (UCL), contract and fiduciary claims based on a “make-believe ‘founding agreement.’”
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June 12, 2024
Court: AI Vision Company May Sue Government Over Contract Process
WASHINGTON, D.C. — The purveyor of artificial intelligence imaging software shares an interest in a government contract because of its economic interest in the results, even if that interest is not direct, and the company can proceed on claims that the government failed to fully undertake its legal duties in evaluating the software, a divided Federal Circuit U.S. Court of Appeals said.
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June 12, 2024
Student, Emory University Settle Claim That School Issued Suspension Over AI
ATLANTA — Emory University and a student who sued it claiming that he received a suspension after creating a highly touted artificial intelligence program reached a confidential settlement, according to court documents filed in Georgia federal court.
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June 12, 2024
5th Circuit Won’t Adopt Special Rule For Use Of AI
NEW ORLEANS — The Fifth Circuit U.S. Court of Appeals declined to adopt a proposed rule governing the use of artificial intelligence, saying a special rule is not necessary given the existing duties attorneys operate under when filing documents with the court.
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June 11, 2024
Even Newest AIs Struggle With Simple Reasoning Question, Researchers Say
HAMBURG, Germany — Even powerful artificial intelligences confidently provide the wrong answer to a basic reasoning problem easily solved by children and produce incorrect but “logic-like” explanations for incorrect responses, showing a “striking breakdown” of large language models (LLMs) suggesting that the models’ abilities are overblown, researchers say in an unreviewed paper published on the preprint website arxiv.org.
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June 11, 2024
Texas Court: AI Surgery Tool Maker Need Not Submit To Presuit Deposition
FORT WORTH, Texas — Even assuming counsel’s arguments during a hearing constitute evidence in a dispute involving an artificial intelligence-assisted surgery tool manufacturer, the company need not produce a corporate representative because the statements fall short of the requirements for a presuit deposition under Texas law, an appeals court in the state said, granting mandamus relief and vacating a ruling to the contrary.
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June 11, 2024
Battling Class, Humana Says Medicare Plaintiffs Lack Jurisdiction In AI Suit
LOUISVILLE, Ky. — A class action claiming that health insurer Humana Inc. improperly denies Medicare claims through the use of artificial intelligence improperly stitches together state law claims while ignoring administrative exhaustion and federal rules, the company tells a federal judge in Kentucky in a motion to dismiss.
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June 11, 2024
Amended Complaint Moots Motion To Dismiss In AI Robocall Case, Judge Says
CONCORD, N.H. — The filing of an amended complaint by the League of Women Voters of New Hampshire and others accusing various entities of illegally using artificial intelligence-created deepfakes of President Joseph Biden’s voice in calls to voters moots a telecommunications company’s motion to dismiss, a federal judge in New Hampshire said in an endorsed docket entry in which he denied the company’s motion without prejudice.
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June 10, 2024
Delaware Vice Chancellor: Shareholder Does Not Show Presuit Demand Was Futile
WILMINGTON, Del. — A vice chancellor in the Delaware Court of Chancery held that a shareholder’s derivative complaint alleging that a telecommunications company failed to prevent its parent company’s alleged scheme to centralize customer data to train artificial intelligence must be dismissed, finding that the shareholder failed to show that making a demand on the board would have been futile.