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HARTFORDBUSINESS.COM | FEBRUARY 24, 2025 15 work without permission, to train its AI model. The case could set a precedent for similar cases involving copyright infringement by AI. Product liability, or determining who is at fault when AI makes a mistake, is also an emerging area of concern, Mazzarella said. Unlike software, which uses simple Boolean logic, AI is dynamic and unpredictable. "You have a product, you put it into the market, and it does something that interfaces with the world, and it can make a mistake, right?" he said. "So, the question becomes, who's respon- sible for that? Should developers be responsible? Who in the chain of commercial sale, or distribution, should be responsible for (AI-introduced) errors that result in design defects? More practically speaking, Freedman believes there will be future litigation concerning client data exposure. 'Wild, Wild West' Meantime, law firms are watching for signals from state and federal govern- ments concerning AI regulations. Recently, President Donald Trump rescinded an executive order from the Biden administration, which provided guidance on the risks and rewards of AI, what the considerations of AI developers should be in terms of bias and prejudice, and the perpetuation of bias and prejudice, Freedman said. "It was comprehensive, although it wasn't quite 'regulatory,' but certainly it put requirements on federal agen- cies and entrepreneurs on how they would develop AI tools so that we at least would have a level playing field," she said. Since then, Trump replaced Biden's executive order with his own, which provides little guidance, leaving much of AI regulation for states to deter- mine, Freedman said. Colorado is the first state to estab- lish an AI law, which goes into effect Jan. 1, 2026. Freedman believes many states will follow it as a model. In Connecticut, there are several proposals to regulate AI that are being considered by the state legisla- ture. One aims to protect consumers from algorithmic discrimination and unfair treatment posed by AI. Last year, Senate Democrats passed a similar bill that would regulate private sector deployment and use of AI systems, but it faced pushback, including from Gov. Ned Lamont, and did not pass. Freedman equates these early days of AI adoption with the freewheeling spirit of social media 20 years ago. The lack of safeguards at social media's inception is widely blamed for the mental health crisis affecting young people now. She views it as a cautionary tale. "I do believe that in this sphere of AI regulation, states will be the leader when it comes to trying to put guard- rails around what is really the Wild, Wild West," Freedman said. "Liberty Bank took a chance on us. We're delighted by our relationship with them." Scott Smith CEO & President, Max Restaurants With personalized ser vices and experienced local lending teams, Max Restaurants leaned on Liberty Bank's partnership to reach their business goals. Contact our Commercial Lending Professionals at liberty-bank.com/commercial Member FDIC Equal Housing Lender. All loans and lines are subject to credit and underwriting approval. 24-LBB-0226_Comm_Lending_HBJ_9.75x6.75_Max_M3.indd 1 24-LBB-0226_Comm_Lending_HBJ_9.75x6.75_Max_M3.indd 1 1/31/25 12:43 PM 1/31/25 12:43 PM JOIN US IN CELEBRATING THESE INCREDIBLE WOMEN! APRIL 30 | 5-8PM | AQUA TURF CLUB SCAN HERE SUPPORTING SPONSORS: EVENT PARTNER: MAJOR SPONSOR: