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Legal & Ethical Issues of AI in Business

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In your learning materials, you have read about legal issues and ethical concerns relating to the use of various types of AI in business. Research current AI news for an item published no earlier than the past year that reports and illustrates a current—or forecasts a future—example of an ethical or legal issue pertaining to the use or function of AI in business. This could be an event that has occurred, a case in litigation, legislation (passed or pending), or regulation (passed or pending), or another issue. This must be an explanatory article that includes objective analysis, not simply a "news blurb" or a slanted opinion piece. This will be your "keynote article" for this Assignment. Using your keynote article as the basis for your topic of this Assignment, complete all of the following: Research and writing - APA7 Paper Research and evaluate the legal and/or ethical issue identified in your selected keynote article, including other or related examples illustrating the issue with the use of AI. When you have gathered your research and studied the issue, write an APA Style 7th Edition paper that does the following: 1. Summarizes the specific event or problem reported in the keynote article, including the type of AI involved, its subfield, its use, the specific company involved (if there is one) and/or stakeholders affected 2. Identifies the legal or ethical issue with the use of this specific AI 3. Includes descriptive examples of the issue in the application of the AI 4. Explains the risk to business posed by the issue 5. Identifies who was (is), or could be, harmed 6. Recommends whether the issue can be prevented or mitigated, and how; or whether the AI application should be used at all because of the issue.

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Voorbeeld van de inhoud

Challenges of AI Generated Co


Introduction


The sudden increase in AI technology over the past few years has made a big difference

in many industries by offering new, advanced means of handling data, automating tasks, and

creating information. With these technological advancements, there are also challenging legal

and ethical issues, mainly because AI is involved more and more in sensitive areas like

intellectual property and law courts. In May 2025, Anthropic, a leading AI company, was

involved in controversy for allegedly using copyrighted work without permission and submitting

AI-created false evidence to the court in a major copyright lawsuit. Here we see the rising

conflict between what generative AI can do and the strict requirements for accuracy,

accountability, and following ethical rules in the law.


The Event or Problem


In the month of May 2025, people became aware of a major controversy related to

Anthropic, the maker of Claude, a generative AI chatbot. A lawsuit filed by three music

publishers brought this issue to the forefront. Universal Music Group, Concord, and ABKCO are

among the companies. Publishers claimed that Anthropic took their copyrighted lyrics without

permission and trained Claude, breaking their intellectual property rights. The case became more

serious after it was revealed that the report submitted by Anthropic’s lawyers included a fake

citation from an academic paper. It turned out that Claude itself was the one who had created the

misleading citations while preparing for the trial. This discovery caused many legal experts to

criticize the way AI is used in courts and led to more inspection of such practices (Brittain,

2025). The inclusion of a fake reference meant the expert report lost credibility and made the

, courtroom setting a riskier place for generative AI. The main conflict is that generative AI

produces content that still needs to satisfy the expected standards of proof and accuracy in

lawsuits. This situation shows there is a need to discuss how AI tools can be misused, who takes

responsibility when they are not correct, and what systems ensure that AI applications are safe

and ethical.


Analysis of the Issue


At the heart of this incident are copyright infringement and the way fabricated

information is treated in a court. The question of whether Anthropic used copyrighted lyrics from

Claude without getting permission is facing legal accusations under U.S. copyright law. Yet, this

ethical issue touches more ground and can cause more harm to both the legal and technology

sectors. When AI is used for citations and analysis on its own, the chance exists for false,

misleading, or incorrect information to appear in official court files. Here, Claude invented a

fake reference and gave it details that led experts to believe it was a real article. This reference

was added to the court filings where the issue was being fought. Despite humans not meaning to,

the act of spreading inaccuracies like these is considered a form of hallucination in AI research

(Dahl et al., 2024). The issue is present when legal experts depend on these technologies but do

not make sure the information is correct. It makes one wonder about how seriously lawyers and

experts follow certain ethical and honest practices in their work for the courts. Besides, it does

not pay enough attention to how AI technologies are being used more, with less consideration for

their limitations and proper checks. The case shows the risk of trusting technology that deals

with sensitive and accurate information (Allen et al., 2024).

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