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AI legal service provider DoNotPay settles class action lawsuit alleging unauthorized practice of law and substandard services. What implications might this have for the future of AI in legal tech? https://lnkd.in/e2V5KtYD #LegalTech #AI

The FTC is currently focused on addressing deceptive AI claims. Interesting for lawyers, DoNotPay, the popular legal services assistant touted as the "world's first robot lawyer", was included in the latest crackdown due to its claims that its service output was equal to the level of a human lawyer. The FTC complaint highlights that: "DoNotPay did not test whether the Service’s law-related features operated like a human lawyer... None of the Service’s technologies has been trained on a comprehensive and current corpus of federal and state laws, regulations, and judicial decisions or on the application of those laws to fact patterns. DoNotPay employees have not tested the quality and accuracy of the legal documents and advice generated by most of the Service’s law-related features. DoNotPay has not employed attorneys and has not retained attorneys, let alone attorneys with the relevant legal expertise, to test the quality and accuracy of the Service’s lawrelated features." https://lnkd.in/eKCE5SnP

AI is a tool that enhances the ability of humans but it cannot and does not replace humans. This is just as true for lawyers as other professions. But the increasing amount of unauthorized practice of law is extremely concerning. Licensed attorneys are punished for ethical misconduct but how can a “robot lawyer” be held accountable under the rules of professional conduct? The simple answer is that it can’t. No license means no accountability.

How can companies using and developing AI manage the legal risks of doing so? These could include claims arising out of data protection breaches, negligence in the design process of application, product liability claims, database right disputes, trade secret disputes, breach of confidence disputes, defamation, data protection disputes, as well as discrimination and harassment . Avneet Baryan offers some tips on how to avoid these legal pitfalls.

#AIGONEWRONG Vol. 61 🤖💔 FTC Takes Action Against AI "Robot Lawyer" The US FTC fined DoNotPay $193,000 for falsely advertising its AI as a "robot lawyer." The company misrepresented its abilities without proper legal backing. This case is a wake-up call: AI in sensitive fields like law must be used responsibly and accurately. 🔗 https://lnkd.in/gspsV555 #AI #LegalTech #AIregulation #AIethics #ConsumerProtection

Really thoughtful post about another part of the evolution of Conversational & Generational AI within communications platforms - lawsuits (like they said in the movie Poltergeist, "They're Hee-ere!"). One of the key areas that Martha Buyer highlights is around the impact of data governance and orchestration - put another way, if the data is not out there, it can't be stolen or misused. Before deploying any kind of AI capabilities as part of a customer interaction, you must have the right guardrails in place to ensure that private customer information stays private - both from intentional misuse and incorporation into a LLM without explicit and current customer consent. #GenAI #ConversationalAI #Compliance #fuelix https://lnkd.in/dHSfANX9

How much do you trust AI? Like many leading law firms, Devant has invested in legal AI resources to help our team speed up legal research and carry out specific tasks to enable us to deliver even more value to our clients. Unlike some, we also have rigorous processes in place to verify any information the AI generates. DoNotPay, the firm claiming to have the 'World's First Robot Lawyer' is (ironically) paying the price for trusting AI over real human brains. https://lnkd.in/ey6dVHtj

Innovations in legal technology are constantly reshaping the landscape of our industry. The recent settlement reached by DoNotPay in a customer class action highlights both the potential and the challenges faced by legal AI startups. This case underscores the importance of maintaining trust and transparency as we navigate the evolving intersection of technology and law. #LegalTech #AI #Innovation #LegalIndustry #Trust. https://lnkd.in/e2V5KtYD

🚨 Sue anyone with the click of a button! 🚨 This slogan, used by DoNotPay (DNP), refers to the company's promise of automating legal processes, making it easy for users to file lawsuits and other legal claims. DNP, which calls itself the world’s first "robot lawyer," offers services like challenging parking tickets, canceling subscriptions, and preparing small claims filings. However, the US Federal Trade Commission (FTC) recently found that DNP's claims about its AI's capabilities were misleading, leading to a $193,000 settlement. Under the settlement, DNP is prohibited from making baseless claims that its features can substitute professional services. The FTC noted that none of DNP’s technologies have been trained on a comprehensive body of law and employees did not adequately test the legal documents generated. This action is part of the FTC's broader "Operation AI Comply", aiming to protect consumers from misleading AI claims in the growing market. Overstating AI's potential not only deceives consumers but also damages trust in this emerging technology. For now, AI remains a supplement—not a replacement—for professional legal advice. It will be interesting to see whether European authorities will also apply unfair competition laws to control AI companies’ marketing practices. #AI #LegalTech #FTC #DNP https://lnkd.in/dnHKHJMa

Navigating the intricacies of legal collections is no easy feat—even for law firms specializing in the practice. Take a look at our new blog post on how Multichannel Conversational AI can help creditors’ rights law firms: https://lnkd.in/gQ6JFfm7 #DebtCollection #DebtRecovery #LegalCollections #ConversationalAI #Chatbot #SMSBot #Multichannel #MultichannelAI