Episode 45: The risks and ethics of AI - Part 2
- Embedded IT
- Jun 30, 2025
- 2 min read
Updated: 6 hours ago
AI continues to evolve quickly, and with it comes a growing list of legal questions. This episode explores the emerging legal considerations that organisations need to understand when procuring AI tools or integrating AI into their services. While the legal landscape is still taking shape, procurement teams must be aware of where the main risks sit and what to watch for when engaging with AI vendors.
This builds on Part 1 of the risks and ethics of AI, where we explore the foundational challenges and considerations.
The growing legal discussions around intellectual property
Intellectual property is one of the biggest areas of legal debate in AI. Many AI engines are trained on publicly available content from across the internet, which raises questions about whether that training data includes someone else’s IP. Several cases are currently being tested, particularly in the US, to determine whether using that content to train an AI model counts as infringement.
Procurement teams need clarity on two things: the ownership and protection of the data used to train the AI engine, and the ownership of whatever the AI produces. If an AI tool creates an image, a video, or a piece of written content, it is still unclear whether the IP belongs to the AI provider or the organisation using the tool. This ambiguity means businesses must scrutinise vendor contracts carefully to understand the implications.
Data privacy and geographical boundaries
Data privacy remains a critical concern. When data is entered into an AI engine, it may move across international boundaries, triggering compliance requirements such as GDPR. Understanding where data will be processed, stored, and governed is essential. Much like cloud procurement, organisations must know how their data will be handled and what protections exist.
Employment law and the shifting job landscape
Another emerging area of legal discussion is employment law. As AI systems become more capable, there is ongoing debate about whether AI will replace jobs or simply shift expectations of job performance. Many roles rely on analysing large amounts of data and making recommendations, such as legal or medical professions, which makes them particularly exposed to AI-driven automation.
At the same time, people who effectively use AI tools may become significantly more efficient at their jobs than those who do not. This raises questions about redundancy processes, employee rights, and how organisations adapt their workforce strategies as AI becomes embedded in daily work.
Understanding contractual risk in procurement
Beyond IP and employment concerns, there are other legal factors to consider, such as licence ownership, responsibility for model performance, and accountability for errors or misuse. Procurement teams must understand exactly what they are buying, where the risks sit, and how to structure contracts that protect the business.
AI brings huge potential, but it also introduces legal uncertainty. Organisations need to assess these risks early, ask the right questions, and ensure contracts reflect the evolving landscape.
For organisations looking to procure AI tools with confidence, our team can help assess risks and build the right protections into contracts, get in touch.