Advocate Jatin Sharma Examines Emerging Legal Questions as Businesses Adopt AI

AI Use Raises Questions About Data and Ownership

Businesses are increasingly using AI-enabled tools for drafting, design, customer support, marketing and internal workflows. Before adopting such tools, organisations may need to understand what information can be entered into a platform, how the provider handles that information and whether confidential or personal data is being shared.

Ownership and permitted use of AI-assisted outputs can also require attention. The position may depend on the platform’s terms, the material used, the nature of the output and applicable law. Businesses can reduce uncertainty by reviewing relevant licences and setting internal guidance for employees and contractors.

Vendor Agreements and Accountability

Digital projects commonly involve outside providers, from software vendors and web developers to marketing agencies and cloud-service operators. Agreements that clearly describe deliverables, payment schedules, service standards, confidentiality, data handling and responsibility for failures can help each party understand its obligations.

The need for clarity is particularly relevant when several providers handle the same information or when a business depends on a third-party platform for important operations. The terms should reflect the actual service and the risks involved rather than rely on a one-size-fits-all template.

Data Protection Is Part of Business Planning

Customer databases, employee records, online enquiries and digital payment information can carry different levels of sensitivity. Businesses should identify what information they collect, why it is needed, who can access it and how it is stored or shared. Applicable legal requirements vary according to the data, sector and operating model.

Basic operational measures—such as restricting access, reviewing permissions, keeping appropriate records and establishing a process for reporting incidents—can support a more organised approach to information management. These measures do not replace legal or technical advice where specific risks arise.

Cyber Incidents Can Have Legal Consequences

A compromised account, unauthorised disclosure or interruption of a digital service can affect customers, business partners and day-to-day operations. In addition to technical recovery, organisations may need to consider contractual duties, reporting obligations and how affected parties should be informed. Planning in advance can make responsibilities easier to identify when an incident occurs.

A Legal Framework for Digital Expansion

Sharma’s stated areas of practice include corporate and commercial law, cybersecurity and data protection, intellectual property, regulatory advisory, arbitration and business disputes. His role with AACCI also connects his work with wider business discussions involving domestic and international commerce.

For organisations adopting new tools, the challenge is to match innovation with clear processes. Reviewing agreements, setting rules for the use of confidential information and checking the terms of digital services can help businesses make more informed decisions as their operations evolve. The specific steps required will depend on each organisation’s circumstances and applicable law.

About Advocate Jatin Sharma

Advocate Jatin Sharma is the Founder and Managing Counsel of Jurist & Jurist International and serves as National Chairman – Legal Services Committee (India) of the Asian-African Chamber of Commerce and Industry (AACCI). His professional areas include commercial law, intellectual property, data protection, regulatory matters and dispute resolution.

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