USA – TEXAS Trends and Developments Contributed by: Christina Morgan, Jason Blackstone and Matthew Yarbrough, Buchalter LLP
Guardrail 5: Use privacy-enhancing technologies where they reduce exposure without erasing accountability Differential privacy, federated learning, secure compu - tation, and encryption can reduce exposure, but they do not eliminate governance needs. Use them as part of a measured programme, and document why you used them and what tradeoffs you accepted. The Competitive Advantage Is Not Data; It Is Governed Adaptability AI and agents will reduce the business need to retain detailed personal data in many contexts, and they will expand the ability to test markets and personal - ise experiences. The legal and security risks do not disappear. They relocate to models, to supply chains, to explainability, and to governance. A winning organisation will be able to say, with evi - dence, that it designed for minimal retention, strong security, and rapid change. It will be able to show that it can modify policy and technical controls quickly without calling outside contractors for every change. It will be able to explain to a regulator or jury how the system worked, what was foreseeable, and why the choices were reasonable. That is the “one story” approach, and it is the most durable strategy you can buy in an unpredictable world.
ciples that translate into controls, and they can be audited. Guardrail 1: Collect less, keep less, and prove it Create retention schedules that are actually enforced technically, not just written. Build deletion into pipe - lines and verify it. Use the FTC’s “scale-down” logic as a simple executive narrative: keep only what you need and dispose of the rest securely. Guardrail 2: Treat models and prompts as regulated assets Maintain a registry of models, prompts, tools, and agents used in production. Document intended use and prohibitions. Require change control for mate - rial updates, especially when outputs drive consumer interactions or decisions. Guardrail 3: Require explainability that matches the risk Not every system needs deep interpretability. High- risk and consequential contexts do require a stronger ability to explain outputs, document inputs, and show oversight. Risk-based governance is the theme across modern AI regulation and frameworks. Guardrail 4: Build portability and exit options into procurement Contract for access to logs, documentation, and exportable artifacts. Avoid architectures where you cannot migrate feature stores or decision logic. Port - ability is not a luxury in an enforcement environment.
619 CHAMBERS.COM
Powered by FlippingBook