# Generative AI Remains at an IP and Privacy Crossroads

By Jon Stine · Published 2024-04-17 · Updated 2026-06-09 · Healthcare on MarketScale
Canonical: https://www.marketscale.com/industries/healthcare/generative-ai-remains-at-an-ip-and-privacy-crossroads

> Legal uncertainty over training data and ownership rights threatens to reshape how companies deploy AI technology

## Key points

- Legal uncertainty over training data and ownership rights threatens to reshape how companies deploy AI technology

Block Field

As artificial intelligence becomes increasingly [integrated](https://marketscale.com/industries/software-and-technology/as-pressure-around-ai-returns-increases-companies-using-should-know-the-generative-ai-basics/) into our daily lives and business operations, the conversation around its ethical and legal implications grows louder. It’s clear that generative AI will continue to face legal battles; applications from [oncology](https://www.medscape.com/viewarticle/oncologists-voice-ethical-concerns-over-ai-cancer-care-2024a100071i?form=fpf), to [mental health services](https://theconversation.com/increasingly-sophisticated-ai-systems-can-perform-empathy-but-their-use-in-mental-health-care-raises-ethical-questions-225498), to the [classroom](https://today.usc.edu/ai-in-the-classroom-how-teachers-make-ethical-judgments/), are raising questions about AI’s ethics and the consequences of not addressing concerns before they cause undue harm. Two of the more persistent battlegrounds that are leading the legal debate around generative AI are [intellectual property](https://marketscale.com/industries/software-and-technology/ai-tools-new-york-times-openai/), as well as the world of [data privacy](https://marketscale.com/industries/retail/generative-ai-for-digital-commerce-customer-data-transparency/).

For example, a recent [congressional hearing](https://www.crowell.com/en/insights/client-alerts/navigating-the-ai-intellectual-property-maze-key-points-from-congressional-hearing) from the Judiciary Committee Subcommittee on Intellectual Property emphasized the urgent need for clearer guidelines on IP protection for AI-generated works, highlighting the risk of stifling U.S. competitiveness under current policies and AI’s profound impact on intellectual property rights, recognizing its significant role in creativity and invention.

> The urgent need for clearer guidelines on IP protection for AI-generated works highlights the risk of stifling U.S. competitiveness under current policies.

In the world of data privacy, despite strong interest in the productivity benefits of generative AI, U.S. leaders face major challenges in deploying AI tools safely, including a lack of strategic planning, governance, and in-house skills. New [research](https://www.sas.com/pt_pt/news/press-releases/2024/april/generative-ai-market-research-study.html) from Coleman Parkes Research and **SAS** found that only 10% of organizations feel prepared for regulatory compliance, with most lacking a comprehensive governance framework.

> Only 10% of organizations feel prepared for regulatory compliance, with most lacking a comprehensive governance framework.

The rise of generative AI, particularly in contexts that blend creativity and commerce, presents a complex challenge for intellectual property law, and privacy concerns still loom large as AI systems incorporate personal data into their vast training sets. Where does this leave the legal debate around generative AI? [**Jon Stine**](https://www.linkedin.com/in/jonstine/), an AI ethicist and seasoned retail technology executive, former leader at the [Open Voice Network](https://openvoicenetwork.org/), weighs in with his analysis.

“In this observer’s opinion, it’s wise and ethical to use a large language model that at the very least places an emphasis and respects sourcing and citation,” **Jon Stine** said.

> It’s wise and ethical to use a large language model that at the very least places an emphasis and respects sourcing and citation.
> *— Jon Stine, AI Ethicist and Retail Technology Executive*

Tags: content creation, generative AI, IP, Jon Stine, privacy

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