Carstens, Allen & Gourley Submits Key Recommendations to U.S. Request for Information on AI Action Plan, Advocating for Clarity, Innovation, and Legal Reform

DALLAS, April 10, 2025 /PRNewswire/ -- Carstens, Allen & Gourley, an award-winning technology and IP law firm, today announced the submission of its recommendations to the U.S. government as part of the Request for Information (RFI) on the development of a national Artificial Intelligence (AI) Action Plan. The law firm's proposals, focused on fostering innovation and ensuring legal clarity, are designed to promote responsible AI development while addressing existing regulatory hurdles.

The firm's recommendations are built around key areas that will support AI adoption across industries, minimize unnecessary regulatory barriers, and ensure the U.S. maintains its competitive edge in global AI development. The following key proposals were submitted:

1. Safe Harbor Exemption for Data Transfers to Third-Party LLMs: To address the uncertainty businesses face regarding the legality of transferring customer data to third-party Large Language Model (LLM) instances, the firm advocates for the creation of a safe harbor exemption. This exemption would facilitate AI adoption by ensuring businesses can freely engage with third-party LLMs, provided they meet established criteria, without violating state-specific data privacy regulations.
2. Revision of USPTO Policy on AI-Generated Inventions: The firm urges the United States Patent and Trademark Office (USPTO) to revise its policies to include protections for inventions discovered or created by AI systems. Allowing protection of inventions discovered using AI is consistent with past practice of providing protection for accidental discoveries and would encourage further innovation.
3. Clarification of Copyright Protection for AI-Generated Works: The firm recommends that the U.S. Copyright Office revise its policy to allow works generated by AI to be registered so long as a human provides the essential elements of creativity and originality. This change would ensure that AI-generated works can be appropriately protected under copyright law, where a human provides creative input.
4. Tax Incentives for AI Data Center Investments: The firm proposes that the AI Action Plan include tax incentives designed to encourage investment in the construction and development of AI data centers. These incentives would prioritize AI infrastructure over other capital projects, driving innovation and attracting investment into AI technologies.
5. Review of Legacy Technology Laws: To facilitate AI adoption, the firm calls for reviewing existing laws and regulations created before the rise of AI technology. If these laws are found to be unnecessarily burdensome or restrictive, they should be updated to accommodate the unique needs of AI development.
6. Creation of a Federal AI Act: In the firm's view, the U.S. needs a comprehensive federal Artificial Intelligence Act (AI Act) to provide consistent regulation of AI technologies. This Act should balance innovation with responsibility while preventing states and local governments from creating conflicting and overly restrictive laws that could stifle AI growth.
7. Federal Agency to Coordinate AI Policy: While awaiting the creation of the AI Act, the firm recommends that a single federal executive agency or liaison be appointed to coordinate federal and state policies on AI. This agency would ensure consistency, monitor regulatory developments, and address complaints related to unnecessarily complex or burdensome regulations that conflict with Executive Order 14179 or the AI Action Plan.

"Our firm's recommendations are designed to create a clear, efficient, and innovation-friendly regulatory environment for AI," said Vincent Allen, managing partner at Carstens, Allen & Gourley. "We believe these changes will accelerate AI adoption while ensuring that protections for privacy, intellectual property, and investment are maintained. The U.S. has the opportunity to lead the world in AI development, and it's crucial that our legal framework supports, rather than hinders, this potential."

Carstens, Allen & Gourley looks forward to further engagement with policymakers and industry stakeholders to refine these recommendations as the AI Action Plan takes shape.

About Carstens, Allen & Gourley

Carstens, Allen & Gourley is a distinguished intellectual property and technology law firm with offices in Dallas and Denver. For over 25 years, we have been leaders in safeguarding our client's intellectual property rights worldwide and providing general legal counsel to technology companies. Our firm supports clients, including venture-backed startups, with comprehensive strategies in patents, trademarks, copyrights, and trade secrets. We have a global commercial litigation and dispute resolution practice that includes state and federal court litigation, international arbitrations, international transactions, and pre-litigation dispute resolution. Our award-winning team is dedicated to delivering top-tier legal services to clients across the globe. For more information, visit https://www.caglaw.com/.

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SOURCE Carstens, Allen & Gourley, LLP