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Product Liability for Products Containing Artificial Intelligence

Product Liability for Products Containing Artificial Intelligence

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Product liability for products containing artificial intelligence (AI) is a complex and evolving legal area that combines traditional product liability principles with the unique challenges posed by AI technology. Product liability refers to the legal responsibility of manufacturers and sellers for injuries or damages caused by their products.

Just like any other product, AI-enabled products can be subject to claims of design defects or manufacturing defects. Design defects refer to flaws in the product's initial design, while manufacturing defects involve errors that occur during the manufacturing process. If an AI product has a defect that causes harm, the manufacturer or seller may be liable.

Additionally, manufacturers have a duty to provide adequate warnings and instructions for the safe use of their products. This is particularly important for AI products, as users may not fully understand the capabilities and limitations of AI systems. Failure to warn of potential risks or limitations could result in liability if harm occurs.

AI products often process and store large amounts of user data, therefore GDPR compliance may be crucial. Manufacturers must take appropriate measures to protect user data from breaches and unauthorized access. Failure to do so may lead to liability under data protection and privacy laws.

Different jurisdictions may have specific requirements for AI-based products, and non-compliance could result in legal consequences.

AI products should be designed to receive updates and improvements as technology evolves. Failing to provide necessary updates to address known issues could result in liability.

It's important to note that product liability cases involving AI are still relatively new, and legal precedents are evolving. Manufacturers and sellers of AI products should work closely with legal experts to navigate the complexities of product liability in the AI context.

An autonomous vehicle can cause injuries to a person posing a liability question on a quite a few legal or physical persons. For example, liable can be car manufacturer, supplier of AI algorithm, or the car owner himself.

If an AI system's decision-making process is not transparent, it can be difficult to establish whether a defect in the AI's algorithm contributed to harm. In scenarios where a clear allocation of risk control is no longer possible, risks insurance might be the answer.

By Nenad Cvjeticanin, Managing Partner, Cvjeticanin & Partners

Serbia Knowledge Partner

Committed to redefining a law firm's role in an emerging regional market, Gecić Law is a full-service law firm that advises international and local clients from the public and private sectors in navigating the complex legal landscape of the region across multiple practice areas. Members of the Gecić Law team have graduated from leading universities in the US and Europe. They have extensive local and international experience, with a particular focus on EU regulatory frameworks and international trade and a proven track record in providing innovative and practical solutions in the most complex of matters.

Gecić Law is an exclusive member of two leading global alliances, TerraLex and TAGLaw, extending its international footprint. The firm and its lawyers have continuously been recognized in several practice areas by elite global directories, including The Legal 500, Chambers and Partners and Benchmark Litigation. Gecić Law was named Law Firm of the Year: South Eastern Europe 2021 and Law Firm of the Year: Eastern Europe and the Balkans 2020 at The Lawyer European Awards and was repeatedly nominated in other practice areas.

For more details, please visit geciclaw.com.


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