Page 12 - AI Vol 2: Risks of AI
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obtained on the Internet, a significant percentage   customers, and parents and students aware of
            of which is copyrighted.  A number  of high-         how the agency is utilizing AI and what protocols
            profile  lawsuits  have  been  brought  challenging   and safeguards are in place. Doing so can help
            these companies’ use of this copyrighted work. If    alleviate skepticism surrounding the agency's use
            these lawsuits are successful, it is possible that   of AI and mitigate the perception that the agency
            these AI services may suddenly be unavailable,       is concealing its AI practices, which could lead

            causing  hardship  for agencies  that  have  come    to negative consequences. In addition to general
            to  rely  on  them.  Locally  deployed  open-source   transparency on AI deployments, agencies should
            models  have  the  advantage  of being  immune       be  especially  careful  and  transparent  about
            from issues with the viability of the creators of    public and student facing AI deployments given
            those models, but if the models themselves are       the risk of harmful or inappropriate AI outputs.
            ruled to contain “copies” of protected work, an      For example, if a city deploys an AI chatbot to
            agency’s deployment of such models may subject       assist users in identifying applicable  building

            the agency itself to potential liability.            and municipal  code requirements  but does not
                                                                 prominently  warn the users that  the  AI may
            Another crucial  issue is public transparency        produce inaccurate responses, and the AI model
            regarding AI use. As  the public becomes more        produces an inaccurate  output  which is relied
            aware of and familiar with AI systems, and the       upon by the user to his or her detriment, the user
            related risks, it is likely there will be increased   may have a legal action against the agency.
            scrutiny on how agencies are (and are not) utilizing
            AI in their provision of services. Agencies should   Similarly, use of AI systems by public agency
            be proactive in making the public, constituents,     officials and employees may result in the creation

                                                                 of “records” for purposes of the California Public
                                                                 Records Act. This is very much an untested area
                                                                 of the law, and whether a particular interaction
                                                                 with an AI  system results in the creation of a
                                                                 disclosable “record” under the California Public
                                                                 Records Act may depend on a number of factors
                                                                 such as how the system is deployed (locally run

                                                                 open-source model vs  commercially  available
                                                                 model which uses user prompts for training)
                                                                 and how the model was used. Agencies should
                                                                 still  take into consideration  the potential  need
                                                                 to disclose both user prompts and AI outputs in
                                                                 response to Public  Records  Act requests.  This
                                                                 underscores the central importance of establishing
                                                                 protocols on AI use, educating staff and officials
                                                                 on permitted uses and risks and limitations of AI






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