Do we need new laws to describe what GAI can and cannot do in the hands of businesses?  Yes and no.

Some laws affecting business apply to GAI-generated activity (ads; on-line experience and interface).  Under the Federal Trade Commission rules you cannot undertake unfair trade practices such as tricking or lying to customers.  Most states have similar and sometimes more granular laws.

You cannot defraud customers.  If GAI lies (well, hallucinates) that can be a fraud.

Current law may require transparency (“you are talking to a machine”) and prevent bias.

FTC has the tools to pursue developers of GAI if they build in bias, even if not with intent; so it is not just the user of GAI that can have a legal liability under current law.

But in fact the US is slow to regulate any new technology.  It was stated that the US as a society likes to permit new tech to develop before they limit it by law.  (The EU, without this alleged US inherent approach, is much further along than the US in issuing governmental controls of GAI).

But GAI does present areas of risk, for business and for citizens, that are not fixable under current US regulations.  Next post will discuss the shape of regulations to come.