Y. David Scharf Discusses AI Liability in POLITICO’s Decoded Newsletter
Partner Y. David Scharf, chair of Morrison Cohen’s Government Strategies & Controversies Practice, was quoted in POLITICO’s Decoded newsletter in its “Big Idea” analysis of the legal risks companies face as they race to integrate AI into their operations.
The piece examines how CEOs across industries are moving quickly to adopt AI but have been slower to put guardrails around its use. Companies in tech, health care, real estate and other sectors already face lawsuits over how they use AI to engage customers and run their businesses. Faulty decisions, data breaches and discriminatory outcomes driven by AI agents could bring further claims. Meanwhile, federal standards remain elusive, and states are taking diverging approaches that threaten a patchwork of conflicting rules. According to industry surveys cited in the piece, fewer than 40% of organizations have a formal, comprehensive AI policy.
David noted that existing legal and regulatory tools can already be used to hold companies accountable, even without new rules, and that enforcement could come from several directions. “We don’t know whether the next wave of oversight will come from state attorneys general, a future administration, or regulatory agencies, and it’s not a partisan issue,” he said. “You see voices across the political spectrum calling for action.”
He also cautioned against expecting a single solution: “Everyone is looking for a magic bullet on AI regulation. There may not be one.”
Read the full newsletter in POLITICO here.
Contacts
- Y. David Scharf Partner & Chair of the Executive Committee; Chair, Government Strategies & Controversies
- ydscharf@morrisoncohen.com
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