Artificial intelligence (AI) can be used to increase the effectiveness of in-house legal departments, allowing attorneys to focus more of their time on value-adding, strategic services. Leveraging AI in this way does, however, entail risks, so general counsels must ensure it is properly integrated. Fund managers must also reassess their compliance with applicable privacy laws given that AI may increase the types of data that they collect. This article, the third in a three-part series, evaluates how fund managers can automate their legal departments and what they should do to ensure that they maintain their data subjects’ privacy. The first article
explored what AI is; how prevalent it is in the funds industry; how it can be used; how fund managers can determine what functions to automate and what obstacles may interfere with implementing AI solutions; and whether humans are still needed in the process. The second article
analyzed what the U.S. government and others are doing to both promote AI and foster its responsible use; how fund managers should diligence and contract with third-party AI service providers; and what risks of bias exist. See “How Fund Managers Can Use Technology to Transform and Streamline Complex Legal Operations: One Manager’s Example
” (Jul. 18, 2019).