Department of Labor Releases New AI Guidance For Employers
Ben Bafumi
The DOL recently released necessary (but non-binding) guidance to help mitigate AI's risk to employees while maximizing AI's benefits to employers. The guidance is focused on one key principle: centering worker empowerment – wherein workers should be informed of and contribute to the design, development, testing, training, use, and oversight of AI in the workplace.  At the source, this key tenet is bolstered by ethical AI development (i.e., development that considers and protects workers). But the guidance doesn't stop with developers and urges companies and organizations that utilize AI to play a primary role in centering worker empowerment. The guidance notes that companies should establish straightforward governance systems with human oversight and ensure transparency to current and prospective employees about current and future AI use; utilize AI systems that help employees and improve job quality while protecting labor and employment rights (e.g., the right to organize, health and safety standards, anti-discrimination protections, etc.), or alternatively, support transitioning workers whose jobs are impacted by AI; and ensure that worker data that is collected, used, or created by AI is limited (i.e., only for legitimate business reasons) and protected responsibly.

As a starting point, companies should compare existing policies with these new guidelines and consider developing or improving internal governance and auditing systems, data privacy protocols, employee feedback channels, and job transition procedures. Baker Botts is here to help companies consider and comply with this guidance.
 
NYS Department of Financial Services Issues Guidance on AI Cybersecurity Risks and Mitigation Strategies
Coleman Strine
On October 16, 2024, NYS Department of Financial Services issued new guidance (“Guidance”) providing NY-regulated financial firms with updates on current AI-related cybersecurity risks. The Guidance does not impose new obligations on financial firms, but instead provides a framework to assist firms in complying with existing cybersecurity obligations.
The Guidance cites AI-enabled social engineering, AI-enhanced cybersecurity attacks, exposure or theft of nonpublic information, and vulnerabilities due to third-party dependencies as among the most prevalent cybersecurity risks to financial firms. To combat these risks, firms should create risk assessments that encompass both their own use of AI tools and AI usage by third-party service providers. When dealing with third parties, firms should consider incorporating additional representations and warranties related to the secure use of AI and non-public information. Internally, firms should incorporate forms of two-factor authentication that are resistant to deepfake attacks, including fingerprint or other biometric authentication systems. Additionally, firm personnel should receive training on AI-enabled social engineering attacks and how to spot them. Firms should also maintain an inventory of all AI-enabled systems and monitor internal and public-facing AI tools for unusual query behavior. As AI-enabled cybersecurity threats continue to evolve, financial firms should stay up to date with industry guidance provided by regulators and continually revise their cybersecurity practices. 
 
Quick Links
For additional insights on AI, check out Baker Botts’ thought leadership in this area:

1. AI Counsel Code Podcast: Listen to "Navigating AI: The DOJ's Evolving Approach" to hear Maggie Welsh and partner Brendan Quigley delve into the Department of Justice’s evolving approach to artificial intelligence. They explore the DOJ’s strategies for addressing AI-related challenges, including regulatory frameworks, enforcement actions, and ethical considerations. 
   
   

For additional information on our Artificial Intelligence practice, experience and team, please visit our page here. 

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