Through improvement in efficiency and promotion of innovation, artificial intelligence (AI) is transforming different sectors, such as healthcare, finance, transportation, and education. However, the rapid pace of developing AI technologies brings forth very complicated legal issues that need addressing before going on with implementation. This chapter focuses on the changing legal landscape associated with AI and examines key areas such as privacy protection, liability, intellectual property, and employment. Data privacy is one of those big issues that accompany AI. A lot of personal data are collected, stored, and analyzed by AI-driven systems. Increasing reliance on algorithmic decision-making models means that there must be very strong legal restrictions keeping unauthorized uses and breaches away from an individual. In such efforts, legislations such as the EU’s General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) regarding the United States help construct key safeguards through the establishment of transparency, user consent, and very strict data processing norms. However, with advancing lines of AI, managing the friction created during the compliance process with innovation and security remains quite a tough challenge. Liability and accountability are yet another crucial legal area regarding AI. AI-driven choices can have consequences that are powerful enough to germinate quarrels about who should be found culpable once an AI system harms or makes mistakes. This shall further be a “fundamental legal question” on whether accountability rests on developers, end-users, or the AI systems themselves.