USA Law and Practice Contributed by: Trevor Keenan, Michelle Byers Graham and Curtis Berglund, Campbell Conroy & O’Neil, P.C.
Legal Challenges to Federal Agency Discretion After Chevron In 2024, the US Supreme Court in Loper Bright v Rai- mondo and Relentless v Dept of Commerce , over- turned Chevron USA Inc v Natural Resources Defense Council Inc , a 40-year-old precedent under which courts generally deferred to federal agency interpre - tations of ambiguous statutes under their purview, so long as the interpretation was reasonable. Courts now exercise their independent judgement when deciding whether a federal agency has appropriately exercised its authority and are no longer required to defer to an agency’s interpretation of an ambiguous statute. This ruling does not call into question past decisions that relied on the Chevron framework.
The speed of AI’s development, implementation and adoption presents challenges to existing legal and regulatory regimes, as does its nature as a non-phys - ical “product” with generative capabilities. The Unites States currently has no legislation or comprehensive regulatory regime to address AI but is being guided in part by Executive Order 14365, Ensuring a National Policy Framework for Artificial Intelligence. The pur - pose of the Executive Order is to establish a uni - form approach to AI regulation and reduce variability among state-level AI laws. In this environment, courts are being asked to adapt traditional legal principles to claims that blame AI systems for adverse outcomes. Notable affected areas include: • consumer protection (AI misleading consumers); • data protection, privacy and IP (what data can be used by AI or to train AI); and • cybersecurity issues (misuse/abuse of AI tools). Given the evolution of policy priorities on AI and their expected impact on the development and implemen - tation of AI systems, private sector companies utilis - ing AI should monitor these developments.
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