Laws for AI: Who is Liable When a Machine Makes a Mistake?

Laws for AI: Who is Liable When a Machine Makes a Mistake?

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Traditionally, what happens when some person makes a mistake, there’s a law for that, but what happens when an AI or a machine makes a mistake, are there any laws for AI? Who holds the legal liability for AI mistakes? In this blog, we will be discussing laws for AI, legal liabilities, and regulations on AI.

Artificial Intelligence is no longer a future thing; it’s omnipresent, aiding us in our everyday tasks, from virtual assistants and self-driving cars to predictive algorithms in healthcare and finance. Our traditional legal system is built around human actions, which can be gauged on the basis of their intent and accountability, but machines don’t think or feel like humans do. AI works on data and algorithms, often with limited human oversight.

Now the question arises: can we apply these traditional laws to Artificial Intelligence? Or do we need new laws for AI? As a law student, it is crucial to understand the intersection between AI and law because in future, AI is going to be even more involved, and as a future lawyer, judge or policymaker, you will have a duty to shape the laws for AI accordingly. So without any further ado, let’s dive straight in.

Understanding Legal Liability For Artificial Intelligence

In legal terms, liability refers to the responsibility a person or organisation holds when some particular harm or damage is done. There are different kinds of liability, each governed by distinct legal principles:

  • Tort Liability: It applies when someone causes harm due to negligence or intentional misconduct. For example, causing an accident due to reckless driving, they are liable for the damages.
  • Criminal Liability: This applies when a person commits an offence that is considered against the state or society. For example, theft, fraud, or assault.
  • Contractual Liability: If two or more people are legally bound to a contract and any of them fails to meet the terms of the agreement, they may be held liable for breach of contract.

In the above mentioned cases, the liability rests on human behaviour like their intent, action, etc, but in the case of AI, these legal frameworks are often challenged as AI doesn’t have feelings, emotions, or any ulterior motive.

An example of this could be– a self-driving car hitting a pedestrian, now who should be held responsible for this? Obviously, it’s implausible to put AI in jail. So, should we blame the developer, manufacturer or car owner?

This poses a legal dilemma; Should we apply our current understanding of legal liability to the machines? And if not, how should laws for AI evolve?

Who Could Be Held Liable When AI Makes a Mistake?

Who’s to Blame When a Machine Makes a Mistake?

Putting liability in cases where Artificial Intelligence is involved is complex as there any multiple nexuses involved, like the developer, manufacturer or person using the AI services and so on.

Let’s discuss four main possibilities that legal systems might consider:

1. The Developer or Programmer

The developer or programmer writes the code for an AI system, and if that system shows flaws in practical use, then the developer might be held liable under product liability or professional negligence.

A prime example of this could be– if a facial recognition software is flawed and shows people of certain ethnic backgrounds, then the developer could be seen as responsible for embedding that bias.

However, there are no specific laws for AI, making it quite difficult to prove, especially in systems where machine learning is at play, as AI’s behaviour changes over time based on new data.

2. The Manufacturer

When physical AI products like self-driving cars, drones, or robots malfunction and cause harm to a person or property, then in that case the manufacturer may be held liable under strict product liability laws. An example of this could be self-driving cars crashing into someone due to sensory failures, the manufacturer will be liable for producing a defective product.

This is quite similar to traditional laws used in product malfunction cases, but Artificial Intelligence makes it complex because the flaws could be in the software and not in the hardware.

3. The End User

In some cases, the person using the AI system could be held liable, especially when they misuse the product or technology. Here, the liability depends upon a few factors, like whether the user had control over the AI’s decision or whether they could have prevented the harm.

4. The AI System Itself?

Some experts proposed to treat AI as a legal person, it’s similar to how companies can be sued as entities. But this idea was widely criticised for being premature and legally unworkable.

This idea makes little sense as AI or machines don’t have a consciousness, assets or morality.

AI and Law: Regulations on AI

 Laws for AI

In India, there are no specific laws that govern Artificial Intelligence.

There are a few laws that can be applied loosely in the context of AI. Let’s see how they are applied as vague laws for AI.

The Information Technology Act, 2000 – It focuses on data protection and cybercrime, but doesn’t directly address AI liability. 

Tort Law – This law struggles with AI’s unpredictability and lack of intent. At best, it can only apply principles like negligence or strict liability.

Contract Law – may offer remedies in AI service disputes, but most contracts don’t cover autonomous decisions.

So, in short, all these legal frameworks appear to be insufficient AI laws, and we need specific laws for AI for a better functioning future society.

Conclusion: Final Thoughts for Law Students

With time, there is rapid advancement in technology and this advancement will tend to grow even further.  Artificial Intelligence is one of the most challenging frontiers yet and our current laws don’t adequately address how accountability and liability should be put on AI or machines, which calls the need for different and pertinent laws for AI.

As a law student, you need to address this issue in our legal system because AI and laws are becoming more of a real-world challenge now. As you move towards the end of your law studies and into your legal practice, whether you go into litigation, policy, corporate law, or tech law, understanding how AI intersects with legal principles will be crucial.

More importantly, you are the generation that will help shape the legal response to AI. That means questioning the existing laws and amending them in order to be more AI specific. Law students should be more open to new legal frameworks that can handle the ethical and societal complexities AI brings with it.

Suggested Readings to Deepen Your Understanding:

  • EU AI Act – Europe’s comprehensive approach to regulating AI.
  • General Data Protection Regulation (GDPR) – Global standard in data protection and algorithmic accountability.
  • India’s Digital Personal Data Protection (DPDP) Act, 2023 – A key step toward regulating digital privacy and consent in India.
  • Research papers on AI liability, legal personhood, and algorithmic transparency.

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