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Education

2026, 90 percent of the internet will be AI-generated (see
"What will stop AI from flooding the internet with fake
images? By Shirin Ghaffary, Vox, June 3, 2023, www.vox.
com/technology/23746060/ai-generative-fake-images-
photoshop-google-microsoft-adobe).

On the bright side, making use of AI tools is not limited
Legal ease: to large, big-budget businesses. Any ISO can accelerate
content creation with AI. A small investment of time into
learning how AI tools work can yield a substantial return
in terms of the quantity and possibly the quality of new
content created.

In this sense, smaller ISOs have a shot at competing with
large processors for business because the cost of content
generation is leveled, to a degree.
AI is coming for us: AI lawyering

Legal strategies Our firm uses AI to assist with drafting and review of
documents, and we have participated in negotiations
for ISOs where counsel opposite us sent us documents that were
commented on by AI. In other words, we use machines
and work opposite machines as lawyers in our work for
By Adam Atlas payments companies.
Attorney at Law This experience has shown us a couple things. First, AI-
generated legal writing is not perfect—indeed it can often
erhaps more than was true for earlier technology miss the point or even draft contrary to the interests of the
advances, it's hard for us to imagine today exact- client. Second, AI-generated contract review is full—and I
ly what AI will do to the payments landscape. mean really full—of time-wasting, nitpicking comments
P As a follower of some developments in AI and a that are likely to slow down legal negotiations if it becomes
legal adviser in payments, some possible issues arise that more common.
perhaps merit review for ISOs and payment processors.
Lawyers who use AI to comment on contracts might believe
Hallucinogenic marketing they are saving time by farming out the work to AI, but they
are—in my experience—sometimes digging themselves
I have asked ChatGPT to produce various marketing into a hole of lengthy and time-wasting negotiations over
pitches for merchant services and Dall-E to produce images immaterial bits of language in the contract.
for the same. The results are at times excellent and also
absurd. ISOs using AI to generate content should keep in As we know, spell check might give you the correct spelling
mind they are responsible for the content they publish. of a word, but the word itself must be reviewed to see that
it is actually the correct word. Similarly, legal work done
More specifically, the payment network rules mandate ISOs by AI needs its own reality check to verify that the content
to sell merchant services under a name that is registered meets that intent of the parties.
with them and sponsored by a member bank. Through
its hallucinogenic creations, AI is able to create content Judges are still human
that runs contrary to the rules for solicitation of merchant
services by, for example, making claims that are not true. For now, at least, judges and juries remain human. While
courts will generally honor the contents of an agreed
ISOs that use AI-generated marketing should carefully business contract, they may also take other factors into
review and edit content to see that it is consistent with consideration when adjudicating a dispute between parties,
the marketing guidelines of their acquiring bank and particularly when the contents of the contract are not clear.
processor.
Lawyers using AI to quickly, neatly and efficiently square
Asymmetrical strength in sales away legal relationships should pause to consider what a
court would say about the content of the legal terms used.
Once upon a time, processors and ISOs hired copywriters
to write blogs, tweets and blurbs. Some of those writers The human element of justice may also play a role
will be replaced with AI-generated content. Europol, in considering the playing field of AI versus human
in charge of law enforcement in the EU, predicts that by interactions. For example, if a merchant is bombarded
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