Artificial Intelligence and Legal Liability

This Blog is Written by K Tanmaya Patra, 2nd Year, BBA LLB, SOA National Institute of Law (SNIL), Bhubaneswar.

The Artificial Intelligence and Legal Liability

Artificial Intelligence (AI) has turned out to be one of the most powerful contributions to technology of the modern world. Its applications are common in different fields including healthcare, finance, transportation, education and even law services. Through AI, it is possible to consider large amounts of data, identify patterns and make decisions that involve minimum intervention of a human. Although these developments have made many processes to be quicker and efficient, they evoke various legal issues. Among the most problematic, the establishment of legal liability in case an AI system creates harm, makes a wrong choice, or inflicts financial or physical damage can be noted. Artificial intelligence is typically understood as a machine or computer software capable of executing tasks typically done by human intelligence. These activities involve data learning, problem-solving, reasoning and decision making. Artificial intelligence technologies are self-driving cars, facial recognition systems, chatbots, recommendation systems, and automated financial trading systems. Most AI systems, as opposed to conventional computer programs, can learn, and enhance their performance through machine learning. This ability enables them to work to some extent autonomously and it becomes hard to foresee them in any given situation. Legal liability entails the legal obligation towards an act or omission leading to the harming of another individual. In legal systems, the liability is attributed to individuals, organizations or companies whose actions result in damage or injury. To illustrate, when a malfunctioning product harms a consumer, the producer will be liable to the product liability standards. But in cases where the AI systems are left to work independently and take their own decisions, it becomes a little more complex to trace who is to blame.

The Question Presents Whether the Liability Should be on the Developer Who Developed the Software, Manufacturer that Developed the AI-Enabled Product, Company that Implemented the System, or the User that Operates the System?

The issue of AI-related incidents is the complicated nature of AI algorithms, which is one of the primary challenges of assigning liability to them. Most AI systems operate with the help of deep learning processes that cannot be understood completely even by their creators. These systems tend to be a black box in that, it is hard to understand the decision-making mechanisms going on inside it. Thus, any damage may be difficult to explain by what mistakes in programming, poor data quality, insufficient supervision, or another factor the problem was generated by the AI system itself. Various entities can be potentially responsible in cases where the harm of AI occurs. In case the algorithm was not designed or tested enough, developers can be blamed. Such a product, which is defected and thus unsafe, might be the responsibility of the manufacturers. The failure to monitor or control the system can also be viewed as an accountability of companies that implement AI technologies. Moreover, cases of AI technology abuse by users or persons who do not follow the safety rules can also be punishable. The existing legal principles of negligence, product liability, or strict liability may be used to solve the case of AI related harm by courts. In India, the liability of artificial intelligence is not directly regulated by any particular law. Nevertheless, some of the current legal frameworks can be utilized in some circumstances. The cases of AI systems causing harm can be dealt with by referring to laws like the Information Technology Act, consumer protection laws, and general principles of the tort law. However, as the field of AI technology keeps growing and accelerating, according to many experts in the legal field, India will require a more specific regulatory framework to address the legal issues of AI technology. To guarantee accountability and responsible use of AI technology, it is significant to create proper legal regulations. Sustainable regulations can be developed to safeguard people, create a direct accountability of the companies and developers, and encourage ethical innovation. Simultaneously, legislators should make sure that policies would not limit the technological development without a reason. To keep up with the development of AI, it will be necessary to find the right balance between promoting innovation and accountability. To sum up, it can be stated that artificial intelligence can change numerous spheres of society and enhance performance in various industries. Nevertheless, the growing independence of AI systems brings up complicated legal challenges of liability and responsibility. The question of who is to bear responsibility in case of an AIcaused harm is still a significant issue to the contemporary law. With the development of technology, the governments and legal institutions will be required to establish coherent rules and regulatory frameworks in order to deal with the problem of artificial intelligence and legal liability without exposing the safe and ethical use of these mighty technologies.

Legal Liability and Artificial Intelligence

The world has become one of the most powerful technologies due to Artificial Intelligence. It is finding in varying applications in varying industries like healthcare, banking, transportation, education and even in legal services. AI systems are able to examine large volumes of data, identify trends, and arrive at decisions within a short period. Due to these capabilities, most organisations are relying on AI to enhance efficiency and save on human labour. Nevertheless, the rise in the application of artificial intelligence has resulted in a few legal issues as well. Among the most significant issues is the question of who is to be held legally responsible in case of an AI system causing harm or making a wrong decision. Artificial intelligence can be defined as computer systems, machines, which are structured to execute tasks that human intelligence would have been applied to. Such tasks can involve experience learning, data analysis, problem solving and predictions. There are examples of AI technologies such as self-driving cars, facial recognition software, digital assistants and computer-controlled decision-making systems employed by businesses. Many AI systems do not need any computer code, unlike a traditional computer program; therefore, they improve with time. Due to this learning ability, their behavior can at times be very hard to foresee. Legal liability refers to the liability that the law places on an individual in case one is guilty of actions that inflict harm to another individual. In a majority of the legal cases, the responsibility of causing the damage is placed on individuals or organisations that have a direct connection with the damage. To illustrate, in case a faulty product harms a consumer the company might be blamed. Nonetheless, in the case of artificial intelligence, it is more complex to find the party accountable. Because the AI systems can be used without the close supervision of a person, the question concerning the liability arises, and no one knows who should take it (the developer, the manufacturer, the company or the user). The complexity of the technology is also one of the key issues in the establishment of AI liability. Several AI systems operate with the help of powerful algorithms that interfere with the huge data. Such systems occasionally behave in a manner in which even the people who make them are not completely aware of them. This scenario is commonly known as the black box problem when it is not clear why one decision was made by a machine. Due to such non-transparency, it may be difficult to make a clear decision on how an error was made and by whom it should be attributed. A number of real-life scenarios have raised the problem of AI liability. One such case in point is the Uber self-driving automobile accident in 2018 in Arizona, in which an autonomous vehicle struck and killed a pedestrian. The accident had brought about the question of whether it should be the company that is driving the vehicle, the creators of the software, or the safety driver who was in the car. The other case is that of facial recognition technology that has in some cases given false results and wrong identification of the individuals. Moreover, AI-based medical instruments have also become a cause of concern since a wrong AI-generated diagnosis may have a detrimental effect on patients. Liability can be attributed to varying parties in a case that deals with artificial intelligence depending on the situation. This may be the case since developers could have developed a poorly designed algorithm that was not well tested. The manufactures can be held liable in the event that the product that is being designed using AI has flaws. The issue of companies that fail to monitor or oversee the system may also make them liable in case of using AI technologies. Equally, it is possible to hold users responsible in case of improper use of the technology or disregard of safety measures. The judges can use established legal concepts including negligence or product liability when deciding cases involving AI systems. India does not have any law at present that directly governs the liability of artificial intelligence. Nevertheless, some provisions that are in place in the law can be relevant in some circumstances. Injury caused by the technological systems can be dealt with through laws like the Information Technology Act, 2000, the consumer protection laws and the general law of tort. With the further evolution of artificial intelligence, many professionals consider that India will need a more straightforward legal system in the future to control how it is used and the problems concerning liability. Artificial intelligence should be properly regulated by the law because of a number of reasons. Explicit regulations can be used to promote responsibility in case of harm, safeguard people in case of technological threats, and promote responsible innovation. Meanwhile, the regulations are not to be too strict, which might decrease the technological advancement. It is the responsibility of lawmakers then to strike the right balance between the promotion of innovation and legal responsibility. To sum up, artificial intelligence is beneficial in many ways and can revolutionize various social spheres. Nonetheless, the growing autonomy of AI systems poses significant legal issues of liability and responsibility. The question of who should be blamed in case of injury caused by AI is still a complicated matter on the agenda of the contemporary law. As technology keeps on changing, the governments and the institutions of law are bound to come up with clear and effective legal frameworks that would govern artificial intelligence and make its use safe and responsible.