Thomas Porricelli, Ian C. Ballon, Sam Sinai and Joe Nazarian Share Insights on the Evolving Artificial Intelligence Landscape

The Artificial Intelligence Roundtable is produced by the LA Times Studios team in conjunction with Citrin Cooperman Advisors LLC; Greenberg Traurig LLP; LegalFacts; and Pathway Law Firm.

AI technology has transformed industries, reshaped workflows and revolutionized the way we live, communicate and make decisions. From machine learning algorithms that predict consumer behavior to advanced language models that assist in human communication, AI is already deeply integrated into our everyday lives. However, as the presence and power of AI grow, so too do the complexities and concerns surrounding its use.

As AI becomes more autonomous and sophisticated, questions arise about privacy, accountability, job displacement and the potential for bias in automated decision-making systems. How do we ensure AI serves society equitably? What policies and safeguards should be in place to protect individuals while fostering innovation?

As with any booming industry, especially with a polarizing and complex technology such as AI, learning about the ins and outs of the diverse and fast-growing space can be overwhelming. To take a closer look at the latest developing trends in the business of A.I., we have turned to four experts on the subject who graciously weighed in for a discussion and shared insights.

Q: Artificial intelligence is transforming the way businesses operate by automating processes, predicting outcomes and providing personalized experiences. What steps should businesses be taking to ease their way into AI use?

Thomas Porricelli, Partner and Co-Practice Leader, Technology Industry Group,
Citrin Cooperman Advisors LLC: Introducing AI into your business can be a game-changer with thoughtful planning. Start by identifying where AI can make the most impact and set clear goals to guide you along the journey. Encouraging a learning mindset and offering training at the onset will ensure your team feels comfortable with the changes. Next, a small test project can be used to gather insights. Using the right tools – and even hiring a professional – can help make sure that this phase runs smoothly. It is also essential to have your data organized and ready to go and address privacy and ethics concerns ahead of time to avoid any unintended bias. Track the performance of your projects and make adjustments as you go. Once you see success, expand AI’s role in your organization gradually but continue to stay up-to-date on AI trends and developments to refine your approach.

Joe Nazarian, Founder and Managing Partner of Pathway Law Firm and Investor in LegalFacts: Businesses should start by identifying specific pain points within their operations. It’s also essential to start small, implementing pilot programs to test the technology’s effectiveness before full-scale adoption. This approach allows businesses to adapt to new processes without overwhelming their teams.

Q: What are the most significant trends in AI that businesses should be paying attention to right now?

Ian C. Ballon, Co-Chair, Global Intellectual Property & Technology Practice Group, Greenberg Traurig LLP: For companies with a global footprint – or that aspire to a global footprint – the divergent approaches to regulation, especially in the European Union and the United States, present challenges for companies in developing and deploying AI products.

Sam Sinai, CEO of RealBotics.ai and LegalFacts: One of the most transformative trends in AI is its application in enhancing client engagement and operational efficiency. At LegalFacts, we have developed a state-of-the-art AI intake agent in collaboration with RealBotics.ai, designed to facilitate seamless interactions with potential clients 24/7. This innovation not only increases conversion rates but also protects attorneys from losing leads to competitors, thereby driving revenue.

Nazarian: The legal industry is increasingly recognizing the importance of such technology. Using an AI intake system helps streamline our processes, allowing us to focus on the personal touch that clients expect while ensuring that no potential client slips through the cracks.

Q: Would you describe AI as something that businesses and the general public are ready to embrace, or do you think that some of the negative press about AI is making industries get cold feet?

Porricelli: The readiness to embrace AI really differs between businesses and the general public, and it is shaped by a few key factors. Many companies, especially in technology-heavy fields like finance and healthcare, are excited about adopting AI to boost efficiency and improve customer experiences. However, they tend to proceed cautiously, often concerned about costs, integration challenges and the need for skilled workers. On the public side, opinions on AI are mixed; while some people appreciate the benefits of AI-driven services, others worry about privacy, potential job losses and ethical issues, leading to hesitation. High-profile stories about AI bias or data breaches can heighten these concerns, making companies more likely to wait for clearer guidelines before fully committing to AI. Despite these challenges, interest in exploring AI remains strong, and fostering education and transparency can help ease fears, encouraging a more open approach to this technology.

Q: How can companies ensure that their use of AI is ethical, and what frameworks exist to guide this process?

Ballon: This is an issue of data governance. Most large companies have ethics committees to ensure their AI implementations are ethical. For smaller companies, there are guidelines available from the National Institute of Standards and Technology (NIST), IAPP, the Future of Privacy Forum and other organizations that can be adapted for company use.

Sinai: Ensuring ethical AI use begins with transparency and accountability. It’s important to have strict data governance policies that align with industry regulations to protect client information. Ethical considerations are paramount. It is critical to prioritize transparency and compliance. Our AI solutions are designed to support, not replace, the human elements of law, ensuring that ethical standards are upheld while enhancing client outcomes.

Q: How can businesses leverage AI to gain a competitive advantage in saturated markets?

Nazarian: By using AI to manage initial client interactions, we can dedicate more time to building relationships with our clients. This personal attention helps foster trust and demonstrates our commitment to their cases, ultimately leading to better outcomes.

Porricelli: Businesses can leverage AI for a competitive edge in saturated markets by applying a few strategies. First, analyzing data for customer insights helps businesses understand trends and preferences, allowing them to tailor products and services for greater customer satisfaction. AI-driven marketing also enables personalized experiences so brands stand out among competitors. Automating repetitive tasks can improve operational efficiency, save time and reduce costs, while predictive analytics can forecast market trends and customer behavior, allowing companies to make proactive strategic decisions. Dynamic pricing, informed by AI, also helps businesses adjust prices based on market shifts to optimize profitability. Additionally, AI tools boost marketing efforts through targeted ads and content optimization for a higher return on investment, and AI-powered chatbots provide quick, effective customer support. By implementing these AI-driven strategies, businesses can improve their effectiveness and establish a unique position in the market.

Sinai: AI can dramatically enhance personalization, which is crucial in a saturated market. Our AI intake agent achieves a 90% success rate in client engagement, which empowers firms to stand out. It allows for efficient data collection and analysis, facilitating tailored communication strategies.

Q: What other emerging technologies do you see as potential disruptors in the legal field?

Nazarian: Emerging technologies such as blockchain for secure documentation and advanced analytics for predictive outcomes are potential disruptors. These innovations could redefine how we handle cases and manage client relationships, positioning firms that adopt them at the forefront of the industry.

Q: What are the biggest challenges businesses face when it comes to acquiring and managing the data necessary for effective AI implementation?

Sinai: One of the main challenges is ensuring data quality and compliance with privacy regulations. It’s essential to have a clear strategy for data governance, as it not only ensures compliance but also enhances the performance of AI systems. Trust is paramount in our industry, and we take that responsibility seriously.

Ballon: The biggest challenge is legal uncertainty. I have worked with companies on this issue since 2016, and the biggest challenge today remains, as it was in 2016, defining what companies may and may not use to train their algorithms. As I address in my legal treatise, there is a smorgasbord of remedies that may apply when a business seeks to train algorithms depending on what information or content is accessed, how it is accessed and what is done with the material once algorithms have been trained. Some data is in the public domain or may be licensed for a fee. Frequently, however, the data, content or information that a company needs to train AI algorithms is owned by third parties who do not offer it for these purposes. There is no comprehensive AI law in the United States. There are at least a dozen statutes or common law theories of recovery that may be implicated depending on what a company seeks to use, how it accesses the data, content or information and what precisely is done with it. These are complex issues that must be closely analyzed to avoid legal exposure. Among other things, copyright law protects original and creative expression – such as motion pictures, videogames and sound recordings – but individual facts generally are unprotectable. When factual data is grouped in a database, it may be entitled to copyright protection for the selection, arrangement or organization of the data, but unless the entire database (or substantially all of the data) is copied, copying may not be deemed infringement. Even where copying for purposes of training AI algorithms may be deemed potentially infringing, the copying could be found to be a fair use depending on factors such as how much was taken, who it was taken from (a competitor vs. all sources) and what it is used for (such as research and scholarship vs. competitive purposes). Companies using third-party content as inputs need to closely analyze their proposed uses and may need to take steps to limit the output of their products to reduce their exposure. By contrast, businesses seeking to protect their content, data or information may need to use contractual and technological means to thwart unwanted use. In addition to ownership and use issues, privacy laws also present challenges. Privacy laws in California and Europe, among other places, allow consumers to have their personal information excised from databases in particular circumstances. This potentially can lead to improperly trained algorithms and AI that isn’t actually very accurate or intelligent, if it was trained on incomplete data sets.

Q: What is the long-term impact of AI on the workforce, and how should companies prepare for this transformation?

Porricelli: The long-term impact of AI on the workforce will be significant, transforming job roles and skill requirements. While many tasks will become automated, new roles will emerge that focus on managing and collaborating with AI technologies. Companies can prepare by investing in employee training and reskilling programs to equip staff with digital and analytical expertise. Encouraging a culture of continuous learning is essential to help employees adapt to changes. Businesses should also redefine roles to integrate AI effectively and ensure smooth collaboration. Monitoring the impact of AI on job satisfaction and performance will allow for leadership to make any necessary adjustments. Additionally, addressing ethical concerns and fostering transparency will help build trust among staff members. By proactively managing these changes, companies can leverage AI’s benefits while supporting their workforce through the transition, ultimately leading to a more innovative and resilient organization.

Q: How are current and upcoming regulations affecting the development and deployment of AI in business?

Ballon: In the United States, the federal government is developing AI rules that impact government contractors and – by extension – corporate best practices across multiple industries. But there is no single federal regulatory structure. Individual states such as California, Colorado and Utah have enacted AI laws. The challenge for companies seeking to develop and deploy AI is that the emerging rules, both domestically and internationally, are not uniform. The European Union, for example, has issued extensive regulations governing AI. Businesses need to understand the rules applicable in their target markets and be nimble enough to adjust their practices as new regulations are likely to be adopted by state governments and others very quickly. We have seen this before with Internet regulation and with data privacy and cybersecurity laws. Legal regimes frequently lag behind technological developments, requiring companies to adapt to quickly changing regulatory environments and to comply with different – and sometimes conflicting – regulatory standards.

Q: How is AI shaping the future of the legal industry?

Sinai: AI is fundamentally changing the legal landscape by automating mundane tasks, allowing lawyers to focus on what truly matters: their clients. An effective AI intake agent not only collects information but also analyzes client needs, helping attorneys prepare better case strategies.

Nazarian: AI is reshaping how we approach client relationships and case management, enabling us to deliver more personalized and efficient services that ultimately enhance client satisfaction and outcomes.

Q: What role does AI play in enhancing cybersecurity, and what cyber risks does AI itself present?

Porricelli: AI enhances cybersecurity by improving threat detection and response through advanced data analysis. It identifies anomalies in network traffic, automates incident responses and predicts potential vulnerabilities based on historical data. AI tools can also streamline security operations, reducing response times and minimizing human error. However, AI also presents cybersecurity risks. Attackers can exploit AI systems, manipulating them to bypass security measures, and by automating cyberattacks using AI, they can increase the speed and sophistication of their strikes. Data poisoning is another major risk that can compromise the integrity of AI models by introducing harmful data during training. To balance these benefits and risks, organizations must implement robust security measures, continuously monitor AI performance and prioritize ethical AI practices. This proactive approach will help mitigate potential vulnerabilities while maximizing AI’s capabilities to enhance cybersecurity.

Ballon: As someone who defends companies in lawsuits arising from cybersecurity breaches, I can attest to the fact that AI both enhances cybersecurity and itself presents certain new risks. It enhances cybersecurity because AI tools can quickly identify patterns that may not otherwise be apparent. In this way, AI tools can help deter fraud and more quickly unmask it. AI also can be used to stress test security – revealing vulnerabilities that may not be apparent to software developers. At the same time, just as companies may deploy AI to reveal vulnerabilities in their networks and firewalls, hackers potentially can use AI to more effectively identify and exploit weak points.

Q: How do you see the future of AI in the legal industry shaping client expectations?

Nazarian: As AI continues to evolve, clients will expect faster, more efficient services with a high degree of personalization. Firms that embrace these technologies will not only meet these expectations but exceed them, creating a competitive advantage.

Q: What advice would you give to law firms looking to integrate AI into their practices?

Sinai: Start small and focus on areas that will deliver immediate benefits, such as client intake and communication. Ensure that your team is trained and comfortable with the technology. A thoughtful, phased approach will facilitate successful integration and maximize your investment in AI.

Q: What opportunities does AI offer to small and medium-sized enterprises?

Nazarian: AI presents significant opportunities for small and medium-sized enterprises (SMEs) by leveling the playing field. By adopting AI, smaller firms can optimize their operations and compete effectively against larger firms, ensuring that they can provide high-quality services while maintaining cost efficiency.

Q: How is AI shaping global business competition, and what role do you see regions like the U.S., Europe and China playing in AI leadership?

Ballon: The U.S. and China lead the world in AI development, but the European Union leads the world in AI regulation. There is often a tension between entrepreneurial development and regulation. At present, the U.S. is a more hospitable market for AI development.

Disclaimer: “Citrin Cooperman” is the brand under which Citrin Cooperman & Company, LLP, a licensed independent CPA firm, and Citrin Cooperman Advisors LLC serve clients’ business needs. The two firms operate as separate legal entities in an alternative practice structure. The entities of Citrin Cooperman & Company, LLP and Citrin Cooperman Advisors LLC are independent member firms of the Moore North America, Inc. (MNA) Association, which is itself a regional member of Moore Global Network Limited (MGNL). All the firms associated with MNA are independently owned and managed entities. Their membership in, or association with, MNA should not be construed as constituting or implying any partnership between them.