What legal risks are associated with AI?

• A. Bias in hiring, facial recognition lawsuits, and privacy intrusion
• B. No risk
• C. Only copyright concerns
• D. Only contract disputes

Answer: (A)

AI introduces legal risk across multiple areas, not zero risk. In hiring, models can show bias or discriminatory outcomes, potentially violating anti-discrimination laws and exposing organizations to lawsuits or penalties. Facial recognition brings specific legal challenges tied to accuracy, consent, and civil rights concerns, leading to lawsuits and regulatory scrutiny. Privacy intrusion concerns arise from how AI collects, processes, and stores data, bringing in data protection and privacy laws and rights for individuals. While other issues like copyright or contract disputes exist, they don’t capture the broad set of legal challenges AI can create, so listing bias in hiring, facial recognition lawsuits, and privacy intrusion best reflects the typical legal risks associated with AI.