Skip to content

Beauty Firms Should Draft AI Use Policies, Even If They Don't Plan To Use AI

Melanie Howard, chair of Loeb’s Intellectual Property Protection and Luxury Brands practices and deputy chair of the Advanced Media and Technology department, is featured in HBW Insight highlighting the need for cosmetics and personal-care companies to establish an AI use policy, emphasizing the necessity for managing AI-related risks, whether the brand is an early AI adopter or opting currently to abstain from its use altogether. An AI use policy is "important for risk management, it's important for legal compliance and the protection of your brand and your reputation with consumers," she said.

In the article, Melanie emphasizes the key components of an AI policy which include addressing confidential information, data preservation, performance monitoring, authorized tools, supervision, incident reporting, policy revisions and user education. She adds that companies should involve key stakeholders in drafting the policy, including legal and technical decision-makers, and deploy it in stages to facilitate staff adaptation. 

"I think AI is so ubiquitous at this point that if you don't have a policy, you're going to have individuals using AI on their own, according to their own judgment, and not really aligned with company values or decisions that the company has made," she said.  Ensuring human review at the end of the process as a "backstop" to review the AI is crucial, "making sure that what's coming out is something that really does align with your brand," Howard suggested.

Finally, Melanie stressed the importance of revisiting the policy regularly as AI technology and the legal landscape surrounding it are moving quickly. 

To read the full article, please visit HBW Insight’s website (subscription may be required).