‍Artificial Intelligence, the Law, and the Value of a Guide in Uncertain Times

Artificial Intelligence could add $15 trillion to the global economy by 2030. While its potential is vast, the exact sources of lasting value remain uncertain. As companies explore tangible use cases, legal disputes are already emerging, and governments are moving to regulate the unique risks posed by AI’s autonomy.

Those responsible for international compliance cannot afford to wait for clarity. They must take the first steps in establishing AI governance and compliance systems within their organisations now.  

Lothar Determann’s Field Guide to Artificial Intelligence Law is the right guide for those pioneers navigating uncharted terrain, where the destination is uncertain, and many of the risks are still unknown.

About the Author

Lothar Determann, a partner at Baker McKenzie LLP in Palo Alto, is a dual-qualified attorney with over 25 years of experience advising clients on U.S. and EU technology and privacy law, as well as global compliance and legal risk management. Before practicing law, Determann pursued an academic career in technology law. He continues to lecture at Freie Universität Berlin and UC Berkeley School of Law.

What the Field Guide Covers

The Field Guide describes the legal challenges posed by AI systems and outlines the steps organizations should take to mitigate legal risks. It is structured into seven chapters, each addressing key milestones in the journey:

1. Artificial Intelligence Law: Explores the legal landscape, including AI-specific laws (e.g., EU AI Act), product safety, intellectual property, data protection, data residency, and more.

2. Starting an AI Law Compliance Program: Provides a roadmap for initiating compliance, focusing on governance, accountability, prioritization, and automation tools.

3. Drafting Documentation: Guides the creation of essential documents, such as legal notices, agreements, and processing records.

4. Assessing Impacts and Mitigating Risks: Explains how to evaluate AI risks, quantify harm, and mitigate liabilities. Includes a catalogue of risks.

5. AI Agreements: Details key elements of contracts, including on ownership, confidentiality, liability, and dispute resolution.

6. Protocols: Offers sample protocols for acceptable AI use and data acquisition.

7. Maintaining and Auditing Compliance: Covers recurring compliance obligations, audits, M&A and vendor due diligence, employee training, and how to monitor developments.

Where the Value of the Book Lies

The Field Guide is like any trusted guide: it draws on decades of practical experience, offers a deep understanding of why certain rules exist, and delivers clear, actionable advice with confidence, even in the face of uncertainty.  

The Field Guide addresses real-world challenges with direct and authoritative guidance. For example:

• On AI Accuracy: “Users must accept that AI output based on probabilistic methods is only probably correct. This means that probably, it is sometimes incorrect.”

• On Accountability: “Companies should consider designating an individual as a steward for each system.”

• On Prioritization: “When you identify compliance gaps in high-risk areas, take action immediately.”

• On Resource Constraints: “Leaders wary of creating new layers of bureaucracy could emphasize the temporary nature of committee assignments.”

• On Compliance Tools: “Every company must first assess its particular compliance needs before resorting to technical solutions.”

One of the Field Guide’s standout strengths is its global perspective. Determann’s advice applies across jurisdictions, with specific details tailored to key regulatory environments where relevant. On compliance prioritization, Determann adopts a pragmatic approach: “Companies usually take a hard look at which jurisdictions' requirements they have to prioritize.” He provides a hierarchy to help organizations focus on the most critical regimes (e.g., presence of management and key employees, where is the entity incorporated or listed, where is the business physically present, where does it sell actively, where is its AI user base). This prioritization and risk management approach helps organizations address their regulatory obligations effectively without being overwhelmed by the complexity of differing legal frameworks.

However, the Field Guide is more than a practical manual—it explains why the rules exist, showing how they often extend from earlier technology laws. By understanding this context, readers can improve their ability to identify emerging legal risks and devise potential responses independently.

Recommendation

No book can answer all the legal questions surrounding AI—this field is evolving too rapidly, and too many jurisdictions are concerned. Determann’s Field Guide does not aim to be exhaustive. Its value lies in its authority, clarity, and practical focus. The guidance contained in this book is grounded in decades of experience and highly credible. It serves as a reliable resource for corporate counsel navigating what to do—and what to avoid—in mitigating AI-related risks.

I highly recommend Field Guide to Artificial Intelligence Law to anyone taking their first steps in AI governance and compliance.