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Pioneering Forward: Carstens, Allen & Gourley's Vision for AI Regulation

On April 10, 2025, Carstens, Allen & Gourley, the acclaimed technology and intellectual property law firm, unveiled a significant set of recommendations aimed at shaping the U.S. government's Artificial Intelligence (AI) Action Plan. This initiative comes as part of the Request for Information (RFI) that seeks to define the framework for how AI will be regulated and integrated across various industries. The firm’s submission emphasizes the importance of legal clarity and innovation, aiming to ease barriers that currently hinder AI adoption and maintain America’s competitive spirit in the global market.

Driving Innovation Through Safe Harbor and Regulatory Revisions

At the forefront of their proposals is the suggestion for a Safe Harbor Exemption for Data Transfers to third-party Large Language Models (LLMs). The firm recognizes that businesses often grapple with the uncertainties of transferring customer data to LLM instances. By establishing a safe harbor, businesses could confidently engage with these technologies, provided they adhere to specific criteria, thus encouraging wider AI adoption without infringing on state data privacy laws.

Another major amendment proposed is the Revision of the USPTO Policy regarding AI-Generated Inventions. Carstens, Allen & Gourley is advocating for policy change that would extend protection to inventions made with AI, similar to protections afforded for accidental discoveries in the past. This shift would not only legitimize the role of AI in the creative and innovative process but also stimulate further technological advancements.

Crafting a Progressive Copyright Landscape

The firm also stresses the need for a clearer stance on Copyright Protection for AI-Generated Works. Currently, the ambiguity surrounding AI-created content hinders its legal protectability. By allowing human involvement in the creative process to safeguard AI-generated works under copyright law, the framework would promote creativity and innovation while respecting intellectual property rights.

Stimulating Investment in AI Infrastructure

To bolster the construction of AI data centers, Carstens, Allen & Gourley proposed introducing Tax Incentives for AI Data Center Investments. Such incentives are positioned as vital for prioritizing infrastructure growth related to AI, heralding a new wave of investment and progress in AI technologies.

Evolving Legacy Laws for AI Adoption

Moreover, the firm calls attention to the necessity of reviewing Legacy Technology Laws that may impede the advancement of AI. As these regulations were established long before AI's emergence, revisiting and possibly updating them would ensure they cater to the unique needs of AI development without becoming an obstacle.

The Case for a Federal AI Act

A fundamental proposal includes the creation of a Federal AI Act, viewed as essential to providing uniform regulation of AI technologies nationwide. This act aims to offer a structured pathway that balances innovation with responsibility while preventing state-level restrictions that may conflict with national policies.

Coordinating a Federal AI Agenda

In addition to these vital recommendations, the firm argues for the appointment of a dedicated federal agency to Coordinate AI Policy until the Federal AI Act is realized. This agency would serve the crucial role of fostering consistency in governance while addressing concerns regarding overly complex regulations that may hamper AI’s growth path.

Vincent Allen, managing partner at Carstens, Allen & Gourley, expressed his firm’s hopes for these recommendations, stating, "We aim to foster a clear, efficient, and innovation-centric landscape for AI. Our goal is to facilitate accelerated AI adoption while upholding privacy, intellectual property, and investment protections."

As Carstens, Allen & Gourley continues its engagement with policymakers and industry leaders, the proposed measures mark a promising step towards an adaptable and progressive regulatory framework that supports America's ambition in AI.