Legal Accountability and Liability for AI Decisions in Business
Legal Accountability and Liability for AI Decisions in Business

Author(s): Andrej Oriňak
Subject(s): Law, Constitution, Jurisprudence, Law and Transitional Justice, Information Architecture, Law on Economics, Commercial Law
Published by: ADJURIS – International Academic Publisher
Keywords: artificial intelligence; legal accountability; liability; negligence;
Summary/Abstract: In recent years, we have seen AI technologies become an integral part of business processes, fundamentally changing the way companies achieve efficiency and innovation. AI implementation in business operations creates complex legal and ethical challenges because of its fast integration into organizational processes. AI systems generate multiple legal issues because their autonomous nature and unpredictable behaviour and self-learning abilities create various problems. The identification of AI error responsibility among developers, operators, users and organizations creates complex problems regarding liability and causation particularly when algorithms show bias and stakeholders demand answers. The current legal system requires modifications to negligence and strict liability and vicarious liability frameworks because researchers propose risk-based approaches for AI regulation. The ability to track AI system operations becomes essential for determining liability because it helps identify responsible parties in cases of system failure. The development of new legal frameworks should focus on filling accountability gaps which stem from self-contained liability provisions. The European Union has started working on AI Liability Directive and Product Liability Directive to resolve questions, but multiple essential issues persist regarding these measures. The evaluation of these matters becomes increasingly challenging when studying them within healthcare and financial services and additional high-risk sectors. The development of complete flexible legal frameworks must occur to enable proper AI deployment while supporting its adoption.

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