Lexology October 8, 2024
In brief
In September 2024, Texas’ Attorney General announced a “first-of-its-kind” settlement with a healthcare generative artificial intelligence (“Gen AI”) company over what it said were “false, misleading, or deceptive” Gen AI products that aid physicians and medical staff in drafting clinical notes and charts. Per the Attorney General, the Company’s advertised hallucination rate was “very likely inaccurate” which “may have deceived hospitals about the accuracy and safety of the Company’s products.” The settlement provides important guidance for all industries, particularly companies using AI involving more sensitive data, to be transparent about its risks, limitations, and appropriate use.
In depth
The September 2024 settlement against Pieces Technologies was one of the first actions brought by a state Attorney General against...
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