Texas AG’s Landmark AI Settlement: A Wake-Up Call for Health Tech & AI Companies

Lexology September 27, 2024
McDermott Will & Emery

The Texas Attorney General (AG) recently announced a “first-of-its-kind” settlement with a healthcare generative artificial intelligence (AI) company, Pieces Technologies, Inc., resolving allegations that the company made a series of false and misleading statements about the accuracy and safety of its AI products. The settlement highlights the potential for enforcement against AI companies under existing laws that are not specific to AI, and the importance of exercising caution in developing claims about an AI product’s efficacy or performance.

In Depth

According to the Texas AG, at least four major Texas hospitals used Pieces’ generative AI products for purposes of producing clinical summaries and documentation from patient data. The settlement alleges that the company developed a series of metrics to claim...

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