Artificial
intelligence
has
gone
from
science
fiction
to
boardroom
reality,
and
if
you’re
an
in-house
lawyer,
chances
are
you’re
grappling
with
its
implications
already.
The
rise
of
Generative
AI
and
Agentic
AI
isn’t
just
reshaping
industries;
it’s
creating
legal
and
ethical
questions
that
demand
attention.
What
exactly
are
these
two
AI
categories,
and
why
does
it
matter
for
your
role?
Let’s
dive
into
the
nuances,
implications,
and
how
to
stay
ahead
in
this
rapidly
evolving
landscape.
Generative
AI:
The
Creative
Powerhouse
Generative
AI
excels
at
producing
new
content—text,
images,
music,
and
more—based
on
patterns
it’s
learned
from
vast
amounts
of
data.
Imagine
drafting
a
contract
and,
instead
of
starting
from
scratch,
a
tool
like
ChatGPT
generates
a
well-structured
template
in
seconds.
Or
picture
DALL-E
transforming
your
ideas
into
compelling
visual
prototypes.
Its
brilliance
comes
with
boundaries.
Generative
AI
doesn’t
think
for
itself.
It’s
reactive
and
task-specific,
operating
strictly
within
the
parameters
of
its
training.
It’s
like
having
a
supercharged
assistant—great
at
executing
commands
but
not
equipped
to
think
strategically
or
adapt
on
its
own.
Agentic
AI:
The
Autonomous
Strategist
Agentic
AI
takes
intelligence
to
the
next
level.
Unlike
Generative
AI,
it
doesn’t
wait
for
instructions.
It
can
perceive
its
environment,
set
goals,
and
adapt
as
situations
change.
Picture
an
autonomous
vehicle
navigating
a
bustling
city.
It
continuously
assesses
its
surroundings,
anticipates
obstacles,
and
makes
split-second
decisions
to
ensure
safety.
Or
imagine
an
AI
project
manager
reallocating
resources
and
adjusting
deadlines
without
human
intervention.
Agentic
AI
is
proactive
and
dynamic,
making
it
a
game-changer
for
complex,
evolving
challenges.
But
its
autonomy
introduces
higher
stakes
for
liability
and
compliance.
Who’s
responsible
when
Agentic
AI
makes
a
mistake?
That’s
a
question
many
in-house
lawyers
are
wrestling
with.
Why
It
Matters
for
Legal
Teams
The
difference
between
Generative
and
Agentic
AI
isn’t
just
technical—it’s
legal
and
ethical.
Generative
AI
might
generate
a
flawed
contract
template
or
plagiarize
a
snippet
of
code,
and
accountability
is
typically
straightforward.
Agentic
AI,
on
the
other
hand,
raises
thornier
issues.
What
happens
when
an
autonomous
system
misinterprets
data
and
causes
harm?
Who’s
liable
when
it
makes
decisions
no
human
anticipated?
These
distinctions
drive
everything
from
how
you
structure
contracts
with
AI
vendors
to
how
you
approach
regulatory
compliance
and
governance.
The
Legal
Questions
You
Can’t
Ignore
Imagine
a
Generative
AI
drafting
a
marketing
campaign.
If
it
plagiarizes
another
company’s
slogan,
it’s
an
IP
issue.
With
clear
safeguards
and
review
processes,
you
can
usually
mitigate
these
risks.
Now
consider
Agentic
AI
in
healthcare.
If
an
AI
system
misdiagnoses
a
patient
due
to
a
flawed
algorithm,
liability
could
implicate
developers,
providers,
or
even
regulators.
The
stakes
are
higher,
and
so
are
the
complexities.
Then
there’s
privacy.
Generative
AI
might
process
personal
data,
raising
compliance
issues
under
frameworks
like
GDPR.
But
Agentic
AI
could
collect
and
analyze
data
autonomously,
introducing
unpredictable
risks
that
demand
even
stricter
safeguards.
How
In-House
Counsel
Can
Stay
Ahead
Get
a
clear
picture
of
the
AI
systems
your
company
uses.
Are
they
reactive
(Generative)
or
autonomous
(Agentic)?
Review
contracts
to
ensure
they
address
liability
for
errors
or
misuse,
and
include
provisions
for
regular
audits
and
compliance
checks.
Develop
internal
policies
with
clear
guidelines
for
AI
use,
focusing
on
data
privacy,
bias
mitigation,
and
ethical
accountability.
Engage
with
cross-functional
teams
like
IT,
compliance,
and
risk
management
to
ensure
alignment.
Stay
informed
about
evolving
regulations
like
the
EU
AI
Act,
which
sets
stricter
rules
for
high-risk
AI
applications
often
tied
to
Agentic
AI.
Looking
Ahead
Generative
AI
and
Agentic
AI
are
redefining
how
businesses
innovate
and
operate.
Generative
AI
offers
incredible
efficiency
for
tasks
like
drafting
documents
or
creating
content,
while
Agentic
AI
opens
the
door
to
autonomous
decision-making
and
adaptation.
But
with
this
power
comes
responsibility,
and
in-house
lawyers
are
uniquely
positioned
to
guide
their
organizations
through
the
legal,
ethical,
and
regulatory
challenges
ahead.
For
deeper
insights
into
navigating
these
complexities,
my
book,
Product
Counsel:
Advise,
Innovate,
and
Inspire,
provides
practical
strategies
for
balancing
innovation
with
legal
oversight.
Whether
you’re
advising
on
cutting-edge
technologies
or
building
frameworks
for
responsible
AI
governance,
the
book
is
a
resource
to
help
you
lead
with
confidence.
How
is
your
organization
adapting
to
AI?
Have
you
encountered
unexpected
challenges?
Let’s
keep
the
conversation
going
—
share
your
thoughts
and
stories.
Olga
V.
Mack
is
a
Fellow
at
CodeX,
The
Stanford
Center
for
Legal
Informatics,
and
a
Generative
AI
Editor
at
law.MIT.
Olga
embraces
legal
innovation
and
had
dedicated
her
career
to
improving
and
shaping
the
future
of
law.
She
is
convinced
that
the
legal
profession
will
emerge
even
stronger,
more
resilient,
and
more
inclusive
than
before
by
embracing
technology.
Olga
is
also
an
award-winning
general
counsel,
operations
professional,
startup
advisor,
public
speaker,
adjunct
professor,
and
entrepreneur.
She
authored Get
on
Board:
Earning
Your
Ticket
to
a
Corporate
Board
Seat, Fundamentals
of
Smart
Contract
Security,
and Blockchain
Value:
Transforming
Business
Models,
Society,
and
Communities. She
is
working
on
three
books:
Visual
IQ
for
Lawyers
(ABA
2024), The
Rise
of
Product
Lawyers:
An
Analytical
Framework
to
Systematically
Advise
Your
Clients
Throughout
the
Product
Lifecycle
(Globe
Law
and
Business
2024),
and
Legal
Operations
in
the
Age
of
AI
and
Data
(Globe
Law
and
Business
2024).
You
can
follow
Olga
on
LinkedIn
and
Twitter
@olgavmack.