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As companies race to embrace AI, they may be exposing themselves to unexpected legal risks, warns Womble Bond Dickinson partner Matt Pearson.

In his recent article, Pearson highlights three recent lawsuits under California’s Invasion of Privacy Act (CIPA), where plaintiffs allege that AI systems “listening to and analyzing conversations in real time” could constitute unauthorized wiretapping. As Pearson writes, “Courts often liken the technology to either a tape recorder (no violation) or an eavesdropping human (violation)” – a crucial distinction that will determine liability. He emphasizes that the focus isn't on abstract philosophy, but on how AI is actually used by companies.

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