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Demystifying the Mysterious World of Artificial Intelligence

By: Angelita Chavez | May 31, 2023

By: Ashima Chock

What is A.I.?

Artificial Intelligence is a machine-based system that can make predictions, recommendations or decisions influencing real or virtual environments for a specified set of human-defined objectives, as defined by the National Artificial Intelligence Act, 2020.

Artificial intelligence can also be defined as a field of computer science that deals with creating machines that can perform tasks which would otherwise require human intelligence. These machines are designed to learn, reason, and make decisions on their own. The goal of A.I. research is to create machines that can perform complex functions such as perception, problem-solving, reasoning, language translation and decision-making.

Limitations of Artificial Intelligence

Despite the remarkable advancements in artificial intelligence (A.I.), has its limitations. One of its biggest limitations is that A.I. lacks true creativity and imagination. While A.I. can analyze and recognize patterns, it struggles with conceptualizing ideas on its own.

Another limitation of AI is that it heavily relies on data to make decisions, which means that if the data inputted into the system is biased or incomplete, then the output will be as well. This can lead to inaccurate results or even reinforce existing biases within society.

Moreover, AI also struggles with understanding human emotions and empathy. Although there have been recent developments in emotional recognition technology, machines are still unable to fully comprehend complex human emotions.

While we continue developing amazing advancements with artificial intelligence technology at an unprecedented rate; we must always keep in mind that it still has its limits and should not be over-relied upon until sufficient regulations are put into place ensuring complete transparency and full accountability for all actions taken by these powerful technologies.


One example  of the limitations and problems arising from the use of A.I. occurred at Samsung. When employees in April used ChatGPT for verification of the code and negligently disclosed their trade secrets.

ChatGPT, is a remarkable tool, gaining lot of popularity throughout the world, with its ease of use, easy access and huge database of algorithms giving instant result, comes with a disclaimer of cautious use. This has resulted in many companies like Wells Fargo, Chase Bank, Bank of America, Walmart, Amazon banning  their employees from using Chat GPT at work. There are regulations being reported which can jeopardize licenses and can give an exposure to possible lawsuits.

There have been inaccurate results for different searches from ChatGPT, proving that A.I. systems are as good as the algorithms and data sets they are based on. The incomplete and biased data will lead to a flawed algorithm, producing inaccurate results, especially in the legal field, as serious mistakes may lead to serious consequences.

Texas Department of Information

There was a recent announcement by the Texas Department of Information about the formation of the Texas Artificial Intelligence Center of Excellence (AI-CoE), which would accelerate innovation and adoption of AI technologies in order to improve the delivery of government services to the people of Texas.

Implications of A.I. and Regulatory Policies

The use of A.I. to create super intelligent machines which may surpass human intelligence but cannot surpass consciousness, morality and common sense. Having autonomous weapons without human surveillance can have tremendous implications to the human race.

As the development of artificial intelligence continues to progress, there has been growing concern about how to regulate it. One major issue is ensuring that AI systems are developed and used in ways that align with ethical principles and do not harm humans or society as a whole.

The Artificial Intelligence Act (AIA), introduced by the European Union on April 21, 2021, is focused on regulating automated technology. It uses a 3-tier system to prohibit and regulate A.I. in different sectors. Depending on the risk category, rigorous testing, accurate documentation of data quality, and an accountability framework, where detailed human oversight are required.

The Artificial Intelligence Act suggests severe consequences for non-compliance, where companies may be subjected to fines of up to €30 million, or 6% of their worldwide revenue.

Canada has proposed The Artificial Intelligence and Data Act (AIDA) to regulate and to create transparency and mitigation of risks.

There is no current federal regulation policy  for A.I. in the US. The National Artificial Intelligence Act of 2020 was a national initiative for A.I. research and development. To provide guidelines on A.I. discrimination as well as on its safe usage and use, the Biden Administration has published the A.I. Bill of Rights. Many states, notably New York and Illinois, have approved their own laws.

New York City Audit Bias Law forbids companies from using automated tools (automated employment decision tools, or AEDTs), such as A.I., in the recruiting and promotion process unless those tools have been independently examined for bias. Further requirements include giving candidates and workers at least 10 days' notice before using AEDT, providing them with alternative options, and imposing civil fines for noncompliance.

The Artificial Intelligence Video Interview Act in Illinois mandates companies to obtain prior approval before using AI technology to videotape or screen applicants. The Department of Commerce and Economic Opportunity must receive a yearly report by December 31 detailing the demographic information, race, and ethnicity of candidates who were interviewed and hired by employers who solely rely on artificial intelligence analysis of video interviews to select candidates for in-person interviews.

In California, the Bolstering Online Transparency Act (BOT) became operative in July 2019.makes it illegal for a person or organisation to communicate or interact online with a person in California using a bot to encourage the sale or transaction of goods or services or to influence a voter's decision in an election without making it obvious that the communication is taking place through a bot. The law defines a "bot" as "an automated online account where all or substantially all of the actions or posts of that account are not the result of a person”.

Too much reliance on A.I. can result in causing more harm than good, if not used with caution. The algorithms used should be transparent and the need of human oversight cannot be compromised, people should be held accountable, and it should be ensured that the system is in proper place before putting it to use.

Professional Opinions on A.I.

In an interview with the BBC, theoretical physicist Stephen Hawking had stated that "the creation of fully artificial intelligence could mean the end of the human race. It would take off independently and keep redesigning itself. Because of their biological limitations and slow rate of evolution, humans would lose out and be surpassed.

CEO and Tesla co-founder, Elon Musk has also issued a warning, calling artificial intelligence "our biggest existential threat" and urging both national and international legislation.

Geoffrey Hinton who is widely regarded as the godfather of AI is now warning on dangers AI chatbots and as Physicist Stephen Hawking had said year earlier, Geoffrey Hinton is now warning about dangers of AI outperforming humans.


The chances of AI hindering integrity and creativity are high. Laws have evolved with changing technology and the same is happening with AI. Like Section 503.001(d) of Texas Business and Commerce Code was used recently by Texas Attorney General to bring lawsuits against Facebook and Google and violations of biometric and privacy protections.

Illinois used 2008 Illinois Law namely, Biometric Information Privacy Act (BIPA) against google, Facebook, TikTok to name a few. It was used to prevent the use of biometrics like face recognition without permission in case against Clearview, a face surveillance company and settled where Clearview cannot sell or profit from it faceprint data base.


The prospect of A.I., including its apparent morality, and creativity, is high, unique, and currently unknown. Companies should learn from NY and IL AI laws and act as socially responsible citizens and incorporate transparent practices before using AI.

As the laws surrounding new technology continue to evolve and grow with the machines they regulate; the Chugh, LLP attorneys will monitor the policies and regulations providing updates as they become available. For any questions regarding using A.I. generated information or content in your business contact your attorney and ensure you remain compliant with current guidelines.

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