Loading…
Loading…
The legal question of who bears responsibility when an AI system causes harm — financial loss, physical injury, discrimination, privacy violations, or other damages. AI liability is unsettled law in most jurisdictions. The EU's AI Liability Directive (proposed) aims to make it easier for victims of AI harm to claim compensation. The EU Product Liability Directive revision extends product liability to software and AI. In practice, liability questions for small teams usually arise in contracts: does your vendor indemnify you if their AI causes a breach? Do your customer contracts limit your liability for AI-generated errors?
Why this matters for your team
Your AI vendor's standard terms almost certainly limit their liability for AI errors to the cost of the subscription. Read the indemnification clauses in both your vendor contracts and your customer-facing contracts — you may be absorbing liability for AI failures that your vendor's terms push onto you.
A law firm's AI research assistant cites a non-existent case in a court filing. The question of whether the law firm, the AI vendor, or both bear liability for the resulting sanctions is an AI liability question.