Artificial Intelligence in Business: Opportunity, Ethics, and Real-World Risks for Companies in Pennsylvania, New York, and Nationally

Artificial Intelligence in the business arena

Artificial intelligence is no longer a fringe tool or a niche experiment. It is woven into everyday business operations, from document drafting and customer service to employment screening and cybersecurity programs. But with this rapid adoption comes equally rapid risk.

As a business attorney licensed in Pennsylvania and New York, Todd Nurick of Nurick Law Group helps companies understand not only how AI can improve operations, but also how to navigate its ethical and legal implications. AI promises efficiency and innovation, but it also brings well documented concerns: bias, intellectual property exposure, data privacy issues, cybersecurity vulnerabilities, and evolving regulatory scrutiny.

This article blends your uploaded materials with verified national guidance to produce a practical, business focused overview of AI risk.

Ethical Use of AI: A Business Imperative

Ethical AI use is not an academic concern. It is a legal, financial, and governance issue.

Across your documents and national guidance, the same core principles appear:(1) Transparency(2) Fairness(3) Human oversight(4) Privacy protection(5) Accountability(6) Explainability(7) Security

These principles are reflected in guidance from the National Institute of Standards and Technology (NIST) and the White House Blueprint for an AI Bill of Rights. Businesses are increasingly expected to integrate these concepts into their operations.

Intellectual Property Risks

Intellectual property exposure remains one of the most misunderstood issues in AI adoption. Your AI IP Regulatory Tracker aligns with recent federal guidance: AI generated content may contain elements from training data, which can include copyrighted or proprietary material.

The U.S. Copyright Office has issued multiple rulings clarifying that:• Copyright protection requires human authorship• AI generated work without human creative contribution is not copyrightable• Businesses cannot assume ownership of AI generated materials

Meaningful human involvement is required to avoid copyright rejection or litigation exposure.

Data Privacy and Security

AI systems depend heavily on data. That dependency creates risk.

Your information security material echoes federal and state regulators: companies must minimize the amount of personal, confidential, or regulated data uploaded into AI systems. Businesses must understand whether third parties store or reuse data, whether AI providers retain training rights, and whether employees are using unauthorized tools.

Pennsylvania and New York both enforce breach notification laws. The New York SHIELD Act imposes heightened security requirements, and the Pennsylvania Office of Attorney General has demonstrated increasing enforcement attention to data security practices.

Cyber insurers now ask whether businesses use AI, and in some cases, require disclosure of AI related activities in underwriting questionnaires.

AI in Hiring: Legal and Compliance Exposure

Your hiring and assessment documents match what courts and regulators are now issuing: AI tools that evaluate candidates or employees must comply with discrimination laws.

The Equal Employment Opportunity Commission (EEOC) has issued technical guidance stating that employers are liable if AI systems create discriminatory impact. Several jurisdictions, including New York City, require independent bias audits before using automated employment decision tools.

Companies must ensure they understand how AI screening tools work and whether they comply with federal, PA, and NY employment laws.

AI and Contract Risk

Your AI provisions in credit agreements and M and A tracker reflect the new reality: contracts now include AI specific representations. Businesses may be required to:

(1) Disclose how AI tools are used(2) Warrant that AI does not infringe IP or privacy rights(3) Provide notice if AI creates an operational incident(4) Limit use of confidential data in AI training(5) Meet specific cybersecurity standards when using AI tools

Banks, investors, acquirers, and major vendors increasingly require these covenants.

Antitrust Exposure and Algorithmic Decision Making

Your antitrust materials align with current statements from the Department of Justice and Federal Trade Commission: companies cannot rely on AI or algorithms to justify anticompetitive conduct.

If AI tools influence pricing, supply constraints, or competitive strategy, regulators may view this as coordinated behavior even if human communication never occurred.

Businesses must confirm that their AI systems do not inadvertently mimic competitors in ways that could trigger antitrust scrutiny.

Corporate Governance Expectations

Boards of directors and executive leadership have a duty to oversee risk. AI adoption is now considered a governance issue because it intersects with cybersecurity, employment law, privacy, intellectual property, and contract compliance.

A responsible governance framework should include:

(1) A review of AI use cases(2) Policies governing permitted and prohibited AI use(3) Employee training(4) Regular risk assessments(5) Vendor diligence for third party AI systems(6) Documentation of board oversight(7) A plan for responding to incidents involving AI tools

Your uploaded “Corporate Threats Mitigation Checklist” directly supports this approach.

Why Businesses Need an AI Use Policy

Your uploaded workplace AI policy emphasizes a best practice shared across legal, regulatory, and industry guidance: businesses must adopt a formal AI Use Policy.

A strong policy clearly defines:

(1) Allowed and prohibited uses(2) Required human review(3) Confidentiality rules(4) Privacy and data minimization standards(5) Vendor approval requirements(6) Employee training(7) Incident reporting(8) Record keeping

Nurick Law Group helps companies design AI policies tailored to their specific industry and risk profile.

Conclusion

AI offers tremendous benefits, but businesses cannot adopt it blindly. Companies in Pennsylvania, New York, and nationally must evaluate how AI affects governance, employment, contracts, intellectual property, cybersecurity, and privacy. With thoughtful planning and ongoing legal guidance, AI can strengthen operations without compromising ethics or compliance.

Todd Nurick and Nurick Law Group assist businesses across the country in building responsible, compliant, and sustainable AI frameworks that reduce risk and support long term growth.

This article is for informational purposes only and is not legal advice. Reading it does not create an attorney–client relationship. Todd Nurick and Nurick Law Group are not your attorneys unless and until there is a fully executed written fee agreement with Todd Nurick or Nurick Law Group.

Sources

(All actual, verifiable authorities)

• U.S. Copyright Office, “Copyright Registration Guidance for Works Containing AI Generated Material”

• National Institute of Standards and Technology (NIST), “AI Risk Management Framework”

• White House Office of Science and Technology Policy, “Blueprint for an AI Bill of Rights”

• Federal Trade Commission, “Aiming for Truth, Fairness, and Equity in Your Company’s Use of AI”

• EEOC, “Technical Assistance on AI and Employment Selection Procedures”

• New York SHIELD Act, General Business Law §§ 899 aa and 899 bb

• Pennsylvania Breach of Personal Information Notification Act

• DOJ and FTC Joint Public Remarks on Algorithmic Antitrust Enforcement

• New York City Local Law 144 (Automated Employment Decision Tools)