As Expected, Google and IBM Follow Microsoft and Indemnify Customers using LLMs
A step forward to unlock GenAI adoption at many companies but risk remains in the details
To find data to train its LLM called ChatGPT, OpenAI essentially electronically copied the entire public internet, in addition to using some private data sources. This training data included information to which OpenAI did not have rights, such as images, personal data, and copyrighted material. OpenAI faces billions in lawsuits from authors and companies (we wrote about the lawsuits in the spring ).
If, for example, a company uses ChatGPT to create marketing materials or improve a process, the company gains financial benefit from ChatGPT, which was trained using data improperly acquired by OpenAI. Firms and authors that has data used for training could document the financial damages incurred and sue both OpenAI and companies that utilize ChatGPT.
This issue has slowed some GenAI adoption.
In response, Microsoft announced earlier this year that customers using ChatGPT through its Copilot products will be indemnified by Microsoft. Thus, customers can use Copilot and Bing Chat with not have to worrying about getting sued. (Note that this indemnification does not apply to the use of OpenAI's Azure API, as Andy Roberts from Microsoft explained at a recent GAI Learning Lab).
Adobe offers similar protection.
Google announced it will do the same, and IBM has also followed suit.
So, what does this mean for AI leaders and their teams?
Liability risk will be reduced or eliminated, but it is still essential to verify where the protection exists (with browser use only or also with API use) and to continue monitoring the developing case law. Additionally, AI Leaders need to assess the liability risk associated with new LLM features in enterprise apps like SAP and Workday and LLM startups under consideration.
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Onward,
Paul