Expert Analysis

• A Lender's Guide To Fraud: Safeguarding Collateral

  

  Recent bankruptcies illustrate that lenders should strengthen credit covenants, collateral field exams and third-party verification in order to detect double-pledging, fabricated assets and documentation fraud enabled by artificial intelligence before losses become unrecoverable, say attorneys at Moore & Van Allen.

• AI And AML: Governance Plays Critical Role In Innovation

  

  Financial institutions adopting artificial intelligence for anti-money laundering compliance should implement governance specific to individual use cases, testing, documentation and human oversight to manage regulatory and enforcement risks as agentic tools expand, say attorneys at Paul Hastings.

• Attorneys Using AI May Have Ethical Duty To Redact Docs

  

  The trajectory of legal ethics guidance in recent years strongly suggests that as redaction technology becomes more accessible, the failure to use it when uploading highly confidential materials into artificial intelligence tools will become increasingly difficult to defend as reasonable, say attorneys at Lewis Brisbois.

• Series

  Juggling And Unicycling Make Me A Better Lawyer

  

  Because I juggle (sometimes with fire) and ride the unicycle, friends and family used to joke that I should join the circus, but I pursued the practice of law instead and learned that my hobbies benefit my profession in several important ways, says Morgan Eddy at Smith Currie.

• How Quantum Risk Could Reshape Legal Obligations

  

  As federal policy, National Institute of Standards and Technology standards, and major market practice converge around postquantum cryptography, companies may need to safeguard their data now to prove they took reasonable measures to protect trade secrets from quantum computers that do not exist yet, say attorneys at MoFo.

• AI Note-Taking Suits May Fill Gap In Privacy Law Structure

  

  A recent class action against Granola joins other pending lawsuits against AI note-taking providers, highlighting the legal uncertainty surrounding these tools, but there are practical steps companies using "invisible" AI services can take to mitigate risk, including conducting inventories and reviewing access permissions, say attorneys at Barnes & Thornburg.

• Planning For The Impact Of FinCEN's CTA Rollback

  

  The Financial Crimes Enforcement Network's recent rollback of Corporate Transparency Act reporting obligations should reduce compliance costs, but its plans to revisit customer due diligence rules should prompt companies and financial institutions to reassess state beneficial ownership programs, say attorneys at Sidley.

• How Rogue AI May Shape Corporate Liability, Responsibility

  

  Recent artificial intelligence cyber incidents offer a window into how companies deploying autonomous systems should document risk controls even when systems exceed their intended boundaries, as jurors may treat unexpected AI conduct as foreseeable evidence of inadequate safeguards, says Jorge Monroy at Verdict Insight Partners.

• CISA Town Halls Signal Key Cyber Rule Changes Ahead

  

  The Cybersecurity and Infrastructure Security Agency recently held a series of town halls to gather additional stakeholder input on the Cyber Incident Reporting for Critical Infrastructure Act, offering potential insights into how the agency may address key issues in a forthcoming final rule, say attorneys at Covington.

• Series

  Ballet Makes Me A Better Lawyer

  

  A lifetime of learning and performing ballet taught me that success — whether in dance or practicing law — comes only through hours of thorough preparation, boundless energy and relentless effort, says Sharon Katz-Pearlman at Greenberg Traurig.

• AI Prompt-Injection Hacking Creates Emerging Legal Risks

  

  Last month, the first decision sanctioning a prompt-injection attack aimed at a U.S. court highlights the risks that this tactic — attempting to manipulate artificial intelligence systems by hiding invisible instructions in a document — poses for trade secrets, patent prosecution and other areas, say attorneys at Kilpatrick.

• Scope Issues For Cos. To Consider Ahead Of Cyber Rules

  

  As the Cybersecurity and Infrastructure Security Agency finalizes its proposed Cyber Incident Reporting for Critical Infrastructure Act rules, organizations can take steps to navigate the uncertainty that stems from inconsistent critical infrastructure sector definitions and overlapping sector boundaries, say attorneys at Wiley.

• What Nonbank Lenders Should Watch In 'Open Banking' Redo

  

  Nonbank mortgage lenders should prepare for several key changes in the Consumer Financial Protection Bureau's anticipated open banking rule rewrite that could reshape verification costs, vendor relationships and loan workflows, says Kara Ward at Baker Donelson.

• 10 Ways To Avoid Privacy Risks Revealed In AI Notetaker Suits

  

  Litigation claiming Otter.ai trained its AI-powered transcription tool on user conversations and a recent complaint alleging Granola’s notetaking bot joined video calls unbeknownst to participants show companies should assess these technologies as communications-capture tools with privacy and wiretap risks, says Jennifer Ruehr at Hintze Law.

• Series

  Taekwondo Makes Me A Better Lawyer

  

  Taekwondo has taught me to recognize when to fight for a position and when to focus on finding a solution, and that the best outcomes are often achieved by solving problems — all of which has improved my work as a bankruptcy lawyer, mediator and Subchapter V trustee, says Amy Denton Mayer at Berger Singerman.