Over the years, artificial intelligence programs have become increasingly popular amongst many individuals, businesses, and families around the world. These technological advances have made it possible for complex decision-making as well as advances in writing software. Alongside various opportunities that artificial intelligence programs have created, they've also introduced various legal questions and concerns that must be understood for the future.
AI: Legal Rights and Responsibilities?
Despite headlines describing AI as "acting on its own," today's AI models usually do not possess legal rights or responsibilities. Unlike corporations or individuals, AI systems cannot currently be sued as independent legal entities.
Instead, courts often look toward the humans and organizations involved in designing, controlling, or using the technology. Potentially responsible parties may include but are not limited to the following.
- AI developers
- Software companies
- Organizations deploying AI systems
- Businesses integrating AI into products
- Third-party vendors
- Individual users in certain circumstances
Determining responsibility depends heavily on the facts surrounding each incident.
AI: Signs of Imperfection?
One legal theory that may arise is product liability. If an AI model contains an unsafe design, inadequate safeguards, or foreseeable vulnerabilities that allow it to cause harm, injured parties may argue that the AI system functioned as a defective product. Traditional product liability cases may often involve the following.
- Defective automobiles
- Dangerous pharmaceuticals
- Faulty machinery
- Consumer electronics
As AI becomes embedded in these products, similar legal principles may apply. Courts may examine whether:
- Reasonable safety testing was performed.
- Known risks were addressed.
- Appropriate security controls existed.
- Warnings were provided to users.
- The product performed as intended.
AI and Negligence
Many AI arguments may instead focus on negligence. Negligence generally asks whether a party acted reasonably under the circumstances. For AI developers, questions could include:
- Were adequate cybersecurity measures implemented?
- Were foreseeable risks ignored?
- Was sufficient human oversight maintained?
- Were dangerous capabilities appropriately restricted?
- Were updates released promptly after vulnerabilities were discovered?
As AI technology becomes more capable, what constitutes "reasonable care" will likely continue to evolve.
Contracts for Artificial Intelligence
Many businesses using AI products enter into contracts that assign responsibility between vendors and customers. These agreements often contain provisions addressing the following.
- Limitation of liability
- Security obligations
- Software updates
- Insurance requirements
- Incident response procedures
Whether these provisions are enforceable depends on applicable law and the specific language contained in the agreement.
Cybersecurity
When AI is capable of identifying vulnerabilities or conducting automated cyber operations, cybersecurity laws become relevant. Potential claims could involve:
- Unauthorized access
- Computer fraud statutes
- Data privacy violations
- Confidential information theft
- Trade secret misappropriation
- Business interruption damages
Private
Private enforcement usually refers to lawsuits brought by individuals or businesses that believe they suffered harm. Possible plaintiffs could include:
- Businesses experiencing financial losses
- Consumers
- Hospitals
- Banks
- Critical infrastructure operators
- Technology companies
- Insurance carriers
Depending on the circumstances, claims might include negligence, breach of contract, product liability, or other causes of action recognized under applicable law. The specific claims available will depend on the facts of each case and the jurisdiction involved.
Public
Government agencies are also paying close attention to AI-related risks. Depending upon the conduct involved, investigations may come from agencies responsible for:
- Consumer protection
- Privacy enforcement
- Cybersecurity
- Financial regulation
- Competition law
- Critical infrastructure protection
Federal and state lawmakers continue to consider legislation addressing AI governance, transparency, cybersecurity, and accountability.
How Insurance is Involved
As AI-related litigation develops, insurance coverage will likely become an important issue. Policies that may be implicated include:
- Cyber liability insurance
- Technology errors and omissions (E&O)
- Commercial general liability
- Directors and officers (D&O) insurance
- Professional liability coverage
Legalities
One of the greatest challenges surrounding AI liability is that the technology is advancing faster than many existing legal frameworks. Courts may eventually establish new precedents regarding the following.
- Autonomous decision-making
- Foreseeability
- Duty of care
- Software defects
- Allocation of fault
- AI governance standards
As additional real-world incidents occur, judicial decisions and legislation will likely continue shaping how responsibility is assigned.
Speaking to a Professional
Artificial intelligence has become an increasingly popular topic of conversation, especially over the past few years. Many individuals and businesses are beginning to utilize artificial intelligence programs to improve their day-to-day tasks. However, with these technological advances may come additional challenges and complications. These conflicts often involve various technologies, cybersecurity, and privacy law. As a result, it may be important to speak to a legal professional who can guide you through the claims process and help you understand your legal options moving forward.
KAASS LAW: How Our Team Can Help
The qualified personal injury attorneys at KAASS LAW are determined to help those who have suffered the consequences from artificial intelligence technologies. We understand that these disputes may cause various legal questions and concerns then maybe difficult to understand. If your business has experienced negative losses from artificial intelligence, you are not alone. Contact KAASS LAW today for a confidential consultation and to discuss your rights moving forward.