Gail Makode, chief legal officer and general counsel at Omega Healthcare Investors (NYSE: OHI), participated in a video interview during Nareit’s REITwise: 2024 Law, Accounting & Finance Conference held March 19-21 in Hollywood, Fla.
Makode emphasized the pivotal role of general counsels in navigating the complex challenges posed by AI. She highlighted the inherent risks associated with AI, noting concerns regarding both input and output data.
“They’re notorious for being like the uber-eager intern,” she said. “That’s what the AI model really is—this intern that pulls all this data for you, but doesn't necessarily think about it or double check [it].”
Makode also discussed the evolving strategies adopted by GCs, particularly the shift toward private enterprise versions of AI tools like Microsoft Copilot. Despite risks, she highlighted the burgeoning business use cases, notably in lease abstractions and contract reviews.
Addressing the rising concern of cyber risks, Makode outlined proactive measures, including incident response planning and compliance with new SEC cyber rules. She also emphasized the heightened importance of materiality assessments in light of the SEC’s new climate change disclosure rule.
“I think that the GC has an incredibly important role to play there...[and] almost needs to insert themselves into a sustainability regime,” she said. “ESG and investor relations folks…have their own kind of stakeholders that they’re reporting to.”