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Sheppard Mullin's The Legit Ledger

Sep 5, 2023

In this episode of the Legit Ledger, Jim Gatto, a partner in Sheppard Mullin’s Washington D.C. office and co-chair of its AI team, joins host Sarah Ben-Moussa to discuss what companies should know as they embrace generative AI, including key legal issues, the European Union’s Artificial Intelligence Act, and unique due diligence concerns when acquiring or investing in companies that develop or use generative AI.


What We Discussed in This Episode:


  • What is generative AI, and why has it become so newsworthy?

  • What are the key legal issues raised by AI?

  • Who is liable if the output produced by generative AI infringes?

  • Can you provide a broad overview of the European Union’s Artificial Intelligence Act? 

  • How does the EU compare to the current landscape in the U.S.?

  • Is it legal for companies to use your output to train their own AI models?

  • What unique issues should be considered when conducting diligence for acquisitions or investments in companies using or developing generative AI?

  • What are some of the most important things companies should do to minimize the risk when using AI?

About James G. Gatto

James G. Gatto is a partner in the Intellectual Property Practice Group in Sheppard Mullin’s Washington, D.C. office, where he also serves as Co-Leader of the firm’s Artificial Intelligence Team and Leader of the Open Source Team.


Jim’s practice focuses on AI, blockchain, interactive entertainment and open source. He provides strategic advice on all aspects of intellectual property strategy and enforcement, technology transactions, licenses and tech-related regulatory issues, especially ones driven by new business models and/or disruptive technologies. 


Jim has over 20 years of experience advising clients on AI issues and is an adjunct professor who teaches a course on Artificial Intelligence Legal Issues. He is considered a thought leader on legal issues associated with emerging technologies and business models, most recently blockchain, AI, open source and interactive entertainment. 

About Sarah F. Ben-Moussa

Sarah F. Ben-Moussa is an associate in the Corporate Practice Group in Sheppard Mullin’s New York office, where her practice focuses on domestic and cross-border mergers and acquisitions, financings and corporate governance matters. As a member of the firm’s French Desk, she has advised companies and private equity funds in both the United States and Europe on mergers, acquisitions, joint ventures, financings, complex commercial agreements, and general corporate matters.


As a member of Sheppard Mullin’s Energy, Infrastructure and Project Finance team, Sarah also represents renewable energy companies, borrowers, financial sponsors, portfolio companies, commercial banks and other financial institutions in a variety of financing transactions. Her practice focuses on a variety of transactions in the energy sphere, representing renewable energy companies in project-level debt and equity financings of wind and solar facilities. 


Before joining Sheppard Mullin, Sarah spent a year and a half studying and working in France,  focusing on corporate transactions and commercial contracts in Europe and internationally. Sarah is also committed to pro bono work, focusing on cases involving children seeking asylum or other immigration-related relief.

Contact Information:

James G. Gatto

Sarah F. Ben-Moussa


Additional Resources:

Copyright Office Artificial Intelligence Initiative and Resource Guide | Law of The Ledger

Training AI Models - Just Because It’s Your Data Doesn’t Mean You Can Use It | Law of The Ledger

Solving Open Source Problems with AI Code Generators – Legal Issues and Solutions | Law of The Ledger

Congress Proposes National Commission to Create AI Guardrails | Law of The Ledger

Sheppard Mullin Launches Artificial Intelligence Industry Team | Sheppard Mullin


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