The Texas Attorney General recently took action against Pieces Technologies Inc., resolving claims that the company made a series of false and misleading statements about the accuracy and safety of its Artificial Intelligence products.
“AI companies offering products used in high-risk settings owe it to the public and to their clients to be transparent about their risks, limitations, and appropriate use,” Texas Attorney General Ken Paxton said in a statement. “Anything short of that is irresponsible and unnecessarily puts Texans’ safety at risk.”
Here are some of the takeaways we are discussing with clients:
- If you are using metrics or benchmarks, you must define them and describe the process you used to calculate them in your marketing materials. Alternatively, you may use a third party service to vet your marketing claims.
- You can’t misrepresent the accuracy or reliability of your service, or what you have done to test or monitor it. You also can’t misrepresent whether anyone providing a review has been compensated.
- You have to provide your customers disclosures regarding known or reasonably knowable future harmful or potentially harmful uses or misuses of the product.
- For GenAI, you must specifically disclose:
- the type of data and/or models used to train the products and services
- a detailed explanation of the intended purpose and use of the products and services
- any training or documentation needed to facilitate proper use of the products and services
- any known, or reasonably knowable, limitations of the products or services, including risks from the use of the product or service, such as the risk of physical or financial injury in connection with a product or service’s inaccurate output
- any known, or reasonably knowable, misuses of a product or service that can increase the risk of inaccurate outputs or increase the risk of harm to individuals
- all other documentation reasonably necessary for a user to understand the nature and purpose of an output generated by a product or service, monitor for patterns of inaccuracy and reasonably avoid misuse of the product or service
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