Episode Summary: The Monopoly Report - Episode 21: Omer Tene Talks Generative AI

Release Date: March 12, 2025
Host: Alan Chappelle
Guest: Omer Tenney, Partner in Data Protection at Goodwin Proctor

Introduction

In Episode 21 of The Monopoly Report, host Alan Chappelle engages in a comprehensive discussion with Omer Tenney, a seasoned partner in data protection at Goodwin Proctor. The conversation delves into the intricate relationship between generative artificial intelligence (AI) and the digital advertising landscape, exploring regulatory challenges, privacy concerns, and strategic assessments necessary for navigating this evolving terrain.

AI vs. Machine Learning in Advertising

Defining AI in the Modern Context

The episode opens with Alan posing a fundamental question about the distinction between traditional machine learning and contemporary AI within the advertising sector:

Alan Chappelle (02:33): "Where does machine learning, which folks in the ad space have been using for two decades, where does that leave off and AI take over? And does that distinction even matter at this point?"

Omer Tenney provides a nuanced definition of AI, highlighting its autonomous capabilities, objectives, and ability to draw inferences—attributes that elevate it beyond traditional machine learning:

Omer Tenney (02:33): "There is a definition of an AI system which is pretty common now across different laws in different jurisdictions. It has autonomy... inputs and outputs... objectives and it can draw inferences." [02:33]

Alan acknowledges the technological advancements that differentiate AI from past machine learning applications, framing AI as the "new behavioral targeting."

Comparing AI to Behavioral Targeting

Lessons from Behavioral Advertising

Alan draws parallels between AI's current trajectory and the historical focus on behavioral targeting (BT) in online advertising:

Alan Chappelle (04:16): "I've sort of taken the position, you know, out in my travels that AI is sort of the new behavioral targeting."

Omer concurs, emphasizing that while AI shares some challenges with BT, it also introduces new dimensions of risk and complexity:

Omer Tenney (04:16): "The issues are similar, but some are very different. First and foremost, safety... accuracy... bias and discrimination... AI poses risks to intellectual property..." [07:48]

Regulatory Landscape and Privacy Concerns

AI’s Expanded Risk Surface

The conversation shifts to the broader implications of AI on privacy and regulatory frameworks:

Omer Tenney (07:48): "The whole risk surface is very different. And we are now talking, you know, what's the worst thing that could have happened in the behavioral advertising space? You would get like a really creepy kind of targeted ad... Whereas here the risks are, you know, humanity, democracy, truth." [07:48]

Regulatory Preparedness

Alan questions the existing regulatory frameworks' capacity to manage generative AI and Large Language Models (LLMs):

Alan Chappelle (12:03): "Is there really isn't a regulatory environment out there right now that's really equipped to handle generative AI and LLM?" [12:03]

Omer responds by advocating for the integration of privacy safeguards directly into AI technologies to prevent intrusive data misuse:

Omer Tenney (12:35): "We need to bake these things into the technology, right? The algorithm... to prevent... privacy invasion." [12:35]

AI Assessments and Compliance

Navigating AI Assessments

Alan introduces the topic of AI assessments, highlighting their emerging importance in US state laws:

Alan Chappelle (16:21): "Now walk me through what is an AI assessment... how do you get buy in to start working on one of those in earnest?" [16:21]

Omer outlines the requirements set by specific laws, such as the Colorado AI Act and New York City's NYC144 Law, which mandate bias audits and risk assessments before deploying AI systems:

Omer Tenney (17:13): "The Colorado AI Act requires assessments... NYC144 requires bias audits before deploying." [17:13]

He emphasizes the necessity of these assessments in ensuring that AI applications do not perpetuate discrimination or violate existing laws:

Omer Tenney (17:13): "If you are using these tools in a way that violates fair housing or employment discrimination laws, then it's a problem." [21:13]

Bridging Legal and Technical Gaps

Effective Communication Strategies

Alan addresses the common challenge lawyers face in communicating AI complexities to their technical counterparts:

Alan Chappelle (24:36): "What's your advice for bridging that gap?" [24:36]

Omer advises focusing on consumer perceptions rather than legal technicalities, fostering transparency and aligning technological advancements with public expectations:

Omer Tenney (24:36): "Leave the law out of it... Think about how your grandmother would react... How will parents think about it?" [24:36]

This approach encourages a consumer-centric view that prioritizes market reception and ethical considerations over mere compliance.

Personal Insights and Closing Thoughts

Behind the Scenes: Personal Passions

In a lighter segment, Omer shares his passion for skiing, highlighting the importance of balance and relaxation in maintaining professional effectiveness:

Omer Tenney (26:11): "I do like skiing... big skiing family." [26:11]

Alan complements this by reflecting on the mental balance skiing provides, drawing a parallel to the focus required in legal and technological endeavors:

Alan Chappelle (27:15): "Anything that you can do to open your mind up and get you thinking about not what you're dealing with... is the biggest gift in the world." [27:15]

Conclusion

The episode concludes with Alan expressing gratitude to Omer for his insightful contributions, underscoring the importance of understanding AI's multifaceted impact on advertising and privacy:

Alan Chappelle (28:01): "Omer, thank you for so much for coming on the pod. This was wonderful." [28:01]

Omer reciprocates the appreciation, reinforcing the collaborative spirit necessary to navigate the complexities of AI in the advertising ecosystem.

Key Takeaways

1. AI vs. Machine Learning: AI introduces higher levels of autonomy and decision-making capabilities beyond traditional machine learning, necessitating new regulatory and ethical considerations.

2. Regulatory Challenges: Current regulations may be insufficient to address the unique risks posed by generative AI, highlighting the need for updated frameworks that incorporate privacy and safety into AI development.

3. AI Assessments: Emerging laws like the Colorado AI Act and NYC144 Law mandate comprehensive risk and bias assessments, underscoring the importance of proactive compliance measures.

4. Bridging Communication Gaps: Effective collaboration between legal and technical teams requires a focus on consumer perceptions and ethical implications rather than purely legal compliance.

5. Ethical Responsibility: The integration of AI in advertising carries significant implications for privacy, discrimination, and societal trust, demanding a conscientious approach to technology deployment.

Notable Quotes:

• Omer Tenney (07:48): "The whole risk surface is very different... the risks are, you know, humanity, democracy, truth."
• Alan Chappelle (12:03): "Is there really isn't a regulatory environment out there right now that's really equipped to handle generative AI and LLM?"
• Omer Tenney (24:36): "Leave the law out of it... Think about how your grandmother would react..."

This episode serves as a crucial discourse for professionals in the advertising and legal sectors, providing valuable insights into the intersection of AI technology and regulatory compliance. By addressing both the technical and ethical dimensions of generative AI, Alan Chappelle and Omer Tenney offer a roadmap for navigating the challenges and opportunities that lie ahead in the evolving digital landscape.