ANALYSIS: How AI Training Data Disputes May Shape Lending Risks

Artificial intelligence related investments have grown exponentially in recent years, fueled primarily by the private credit and broadly syndicated loan markets. At the same time, the number of AI training data lawsuits is growing and as a result, AI firms are facing possible legal and reputational risks.

As lenders become more heavily invested in the AI industry, they have to consider the unique risks, including related litigation. Training data lawsuits can impact the credit quality of AI firms and thus lender enforcement rights. Lenders should consider several measures to protect themselves such as affirmative covenants on borrower IP rights, AI-specific ...