Travis & De Blase LLP’s AI Enhanced General Counsel practice helps businesses navigate the legal, regulatory, and contractual dimensions of artificial intelligence. Below are answers to frequently asked questions about AI law and our advisory services.
What is AI Enhanced General Counsel?
AI Enhanced General Counsel is a practice area focused on helping businesses understand and comply with the laws, regulations, and contractual considerations that apply to the use of artificial intelligence. This includes advising on AI-specific regulations such as NYC Local Law 144 and the EU AI Act, drafting and negotiating AI vendor contracts, developing AI governance policies and frameworks, conducting AI risk assessments, and assisting with AI-related disputes and enforcement actions. As AI becomes embedded in business operations across industries, AI Enhanced General Counsel has become an essential component of sound business legal strategy.
Why does my business need an AI lawyer?
If your business uses AI in any capacity — whether for hiring, customer service, data analysis, content generation, or decision-making — you have legal obligations that require specialized attention. AI regulations are proliferating at the local, state, national, and international levels. AI vendor contracts raise unique issues around intellectual property, data rights, liability, and compliance that standard software agreements do not adequately address. AI-related litigation, including discrimination claims, IP disputes, and product liability actions, is growing rapidly. An attorney who understands both the technology and the legal frameworks governing it can help you use AI effectively while managing and mitigating these risks.
What is NYC Local Law 144 and does it apply to my business?
NYC Local Law 144 regulates the use of Automated Employment Decision Tools (AEDTs) by employers and employment agencies in New York City. If your business uses any automated tool that substantially assists or replaces human decision-making in hiring or promotion, Local Law 144 likely applies to you. The law requires an independent bias audit of the tool before use, publication of the audit results on the employer’s website, and notice to candidates and employees that an AEDT is being used. Violations can result in civil penalties. Importantly, the law applies regardless of whether you built the AI tool yourself or purchased it from a third-party vendor.
Does the EU AI Act affect businesses in the United States?
Yes, in many cases. The EU AI Act has extraterritorial reach, meaning it can apply to businesses outside the EU if their AI systems affect individuals within the EU. If your company sells products or services to European customers, employs people in the EU, or deploys AI systems that process data from EU residents, you may be subject to the Act’s requirements. The Act classifies AI systems by risk level and imposes requirements ranging from minimal (for low-risk systems) to extensive (for high-risk systems used in employment, credit, education, and other sensitive areas). Non-compliance can result in fines of up to 35 million euros or 7% of global annual turnover.
What should be included in an AI vendor contract?
AI vendor contracts should address several issues that standard software agreements often overlook. Key provisions include clear allocation of intellectual property rights for input data, output data, and any models or derivatives, liability allocation for AI errors, bias, and discriminatory outcomes, data rights including what data the vendor can access, how it can use it, how long it is retained, and what happens to it on termination, transparency and explainability requirements so your business can understand and explain AI-driven decisions, compliance obligations that require the vendor to maintain compliance with applicable and evolving regulations, audit rights enabling you to verify the vendor’s data practices and compliance claims, and termination rights if the vendor’s product cannot be brought into compliance with new legal requirements.
Who owns the content or work product generated by AI?
This is one of the most actively debated questions in AI law. Under current U.S. intellectual property law, the U.S. Copyright Office has taken the position that works generated entirely by AI without human creative involvement are not copyrightable. However, works that involve meaningful human creative input in directing or curating AI output may qualify for copyright protection. In the contractual context, ownership of AI-generated work product is determined by the agreement between the parties. If your contract with an AI vendor is silent on this issue, you may find that the vendor claims ownership of outputs generated using your data. This is why clear IP provisions in AI contracts are essential.
What is an AI governance framework and does my business need one?
An AI governance framework is a set of policies, procedures, and practices that guide how your business develops, deploys, and manages AI systems. A governance framework typically includes an inventory of all AI tools used by the business, risk assessment procedures for evaluating AI systems before deployment, policies for data management, privacy, and security in the AI context, procedures for ongoing monitoring and auditing of AI systems, training requirements for employees who use or oversee AI systems, and incident response procedures for addressing AI failures or adverse outcomes. Whether your business needs a formal governance framework depends on the extent of your AI usage, the regulatory environment in which you operate, and your risk tolerance. For businesses that use AI in significant operational contexts, a governance framework is increasingly becoming a regulatory expectation rather than a best practice.
Can my business be sued for using AI that produces biased results?
Yes. If your business uses an AI system that produces discriminatory outcomes — particularly in contexts such as hiring, lending, housing, or customer service — you can face legal liability. This includes claims under federal and state anti-discrimination laws, enforcement actions by regulatory agencies, and private lawsuits by individuals harmed by biased AI decisions. Importantly, the fact that the AI system was built or provided by a third-party vendor does not insulate your business from liability. Under laws like NYC Local Law 144, the employer or business that deploys the AI tool bears the compliance obligation, regardless of who developed the tool. Regular bias auditing and proactive compliance measures are the best defenses against these claims.
How is AI regulation expected to evolve in the near future?
The regulatory landscape for AI is evolving rapidly. At the federal level, various executive orders, agency guidance documents, and proposed legislation are shaping the framework for AI governance. At the state level, New York and several other states are considering comprehensive AI legislation. Internationally, the EU AI Act is setting a global standard that is influencing regulatory approaches worldwide. The trend is clearly toward more regulation, not less. Businesses that take a proactive approach to AI compliance now will be better positioned to adapt as new requirements take effect, while those that wait risk being caught unprepared by regulatory changes that could require costly and disruptive operational adjustments.
How do I get started with AI Enhanced General Counsel services at Travis & De Blase LLP?
Contact us at (212) 248-2120 or info@travisdeblase.com to discuss your AI-related legal needs. Whether you need a contract reviewed, a compliance assessment, a governance framework, or ongoing advisory support, we can help. Our offices are at 40 Wall Street, Suite 2508, New York, NY 10005.
Learn More
For a comprehensive overview of our practice, visit our AI Enhanced General Counsel page. You may also find these articles helpful: New York AI Compliance in 2026 and Five Essential AI Contract Provisions for Your Business.