Module 6: Current Laws that apply to AI Systems: Liability Reform for AI

Question 1

What is the definition of product liability law?

Answer 1

Law that relates to those who make/sell products being held responsible for harm their products may cause.

Question 2

What are the 2 distinct approaches to product liability law in the EU?

Answer 2

1) Fault Liability regimes: Must prove an action or inaction by the product maker caused the harm.
2) Strict Liability (aka No Fault) regimes: Do not need to prove intentional wrongdoing or fault, only that a product defect caused harm.

Question 3

Name 2 reasons why it’s difficult to prove liability and to compensate for AI induced harm.

Answer 3

1) Difficult to attribute harm due to the autonomous, constantly evolving and changing nature of AI systems.
2) AI systems are highly complex and technical, so it can be difficult to understand what led to harm.

Question 4

Which 2 EU proposals seek to make it easier for victims to prove liability and receive compensation in cases where AI causes harm?

Answer 4

1) Reform of the 1985 Product Liability Directive
2) AI Liability Directive (reinforces the EU AI Act)

Question 5

What are the 2 key measures put forward by the AI Liability Directive?

Answer 5

1) Courts empowered to order the disclosure of evidence about high-risk AI systems from providers.
2) Courts will be able to presume a causal link between non-compliance with relevant laws and AI induced harm.

Question 6

What are the 3 main types of liability claims under US law?

Answer 6

1) Strict liability
2) Negligence
3) Breach of warranty

Question 7

Name some US case law involving AI.

Answer 7

• Rodgers v. Christie - Held that AI is not a product (under New Jersey law). The AI recommended pre-trial release of a defendant, who then committed murder.
• Connecticut Fair Housing Association v. Corelogic Rental Property Solutions - Seeks to asset that vendors can be held liable for harm cause by AI systems. Disabled tenant denied housing - violation of state Fair Housing law (case still pending).

Question 8

List guidance published by different US agencies involving the use of AI.

Answer 8

• White House Blueprint for an AI Bill of Rights
• FTC: FTC Act may be violated by unsubstantiated claims of accuracy of collection of biometric information tools.
• FDA:
• NIST Risk Management Framework
• Presidential Executive Order 14091 on Advancing Racial Equality: Federal Agencies must root out bias in the design and use of AI