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Gen AI Makes Legal Action Cheap – and Companies Need to Prepare

Traditionally, legal actions have been time consuming, expensive, and distracting. Generative AI makes it easier — and cheaper — for customers, employees, competitors, and regulators to take legal action, at the same time that a turbulent geopolitical environment increases legal exposure. Future legal risks will be legal fishing expeditions akin to internet “phishing” attacks: less personal, mass-produced actions initiated by many actors. When coordinated, they’ll be much more like distributed denial of service (DDoS) attacks, which involves overwhelming a target with a flood of traffic to knock it offline. To prepare for this new reality companies need to take a page out of cybersecurity readiness. Specifically, they’ll need to quickly take action to better understand their vulnerabilities, emerging threats and their potential impact, the risk-mitigation actions they want to take, and their communication strategies to internal and external stakeholders.

When coordinated, they’ll be much more like distributed denial of service (DDoS) attacks, which involves overwhelming a target with a flood of traffic to knock it offline. Last year, in order to enhance tax compliance, the U.S. Treasury Department proposed a rule designed to increase cryptocurrency disclosures. The crypto industry thought the obligations were too broad and pushed back hard — with the support of an unconventional ally.

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