Compliance Stuff

Employee theft of trade secrets is not only on the rise but is now easier than ever before due to widespread access to rapidly evolving and affordable technology.  Employees continue to use personal email accounts, thumb drives, phone cameras, personal cloud-based accounts (such as OneDrive, Google Drive, and iCloud), and external hard drives to mass-transfer, store, and retain their employer’s trade secret information post-separation. But are these types of technological advances the biggest threat to trade secret protection? With the rise in popularity and availability of generative artificial intelligence (“gen AI”), many employers fear that safeguarding their trade secret information in the future may become even more difficult. How employees are using gen AI in the workplace Employers may be surprised to hear that, according to one survey recently conducted by McKinsey & Company, 61 percent of workers are either using or plan to use Gen AI in conjunction with their work. ...

Be cautious, be curious, be vigilant, and be brave. Those were the words of the New York State Bar Association’s Task Force on Artificial Intelligence. It is good advice. GenAI is here and lawyers need to understand its risks, its benefits, and how it can (and should) be ethically integrated into their legal practice.  Despite the changing world around us, a lawyer’s fundamental ethical obligations remain the same . Attorneys are required to comply with the Rules of Professional Conduct in their state and apply those rules to GenAI . Some states have issued AI-specific guidance while others are still racing to catch up. We highlight some of the state guidance as well as the ABA Model Rules. GenAI in ABA Model Rules While the ABA Model Rules do not apply to attorneys directly, they form the foundation of the majority of state rules so guidance from the ABA is helpful. The relevant obligations in these rules include:   Competence (Rule 1.1) Rule 1.1 mandates competent represent...