The Legal Shield Protecting AI Chatbots: US Law Section 230 Explained
Until recently, understanding customer was considered the grail. But, with the rise and accelerated peaking of ChatGPTs, understanding chatbots would become the Holy Grail of Marketing and Customer service. Chatbots or Artificial intelligence (AI) chatbots are becoming increasingly popular in the digital space, as businesses strive to improve their customer experience and streamline operations. However, with the rise of AI chatbots comes the potential risk of defamation claims against them. Fortunately, Section 230 of the US Communications Decency Act provides a legal shield for AI chatbots, protecting them against defamation claims.
Last week, OpenAI was called out in a news report for threatening an AI developer with legal action. Reason? The AI developer released a generative AI tool called GPT4free that bypasses the payment wall of ChatGPT4. There are different types of risks associated with the use of AI platforms that are increasingly getting adopted by businesses without enough testing and validation. One of them is the risk of AI-powered disinformation, which essentially means that chatbots could be sharing authoritative-sounding information that are actually false. With GenAI tools, the risks have only magnified more in the recent weeks. As LLMs become more progressive and advanced in their ability to self-learn from different sources, including platforms that are not verified for accuracy of information or fake news, the risks of disinformation could become counter-productive to both, the business owners as well as end-users.
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The Communications Decency Act of 1996, provides immunity to online service providers and website owners from liability for content posted by their users. This means that if an AI chatbot is accused of defamation, the chatbot’s owner is protected from legal action.
According to first-party data collated by wordenfirm.com, due to the implementation of Section 230 AI chatbots are less likely to be defamed or accused of spreading false information. In fact, the data shows that AI chatbots have only been involved in 2% of all defamation cases, compared to 32% for human users. The data highlights the importance of Section 230 in protecting AI chatbots from legal battles that can be both time-consuming and costly.
Andrea Worden, lawyer and founder of wordenfirm.com, shared her expert comment on the importance of Section 230 in the digital landscape. She states, “Section 230 has been a game-changer for AI chatbots, providing legal protection and allowing businesses to leverage this technology with confidence. It has revolutionized the way we interact with technology and has opened up new opportunities for businesses to improve their customer experience.”
With Section 230 in place, AI chatbots are a powerful tool for businesses to enhance their customer experience and streamline operations. They can provide personalized assistance, offer solutions, and make interactions more efficient. By protecting AI chatbots from legal battles, Section 230 is enabling businesses to leverage this technology with less risk and greater confidence.
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