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The Law and Economics of AI Liability

Author

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  • Miriam Buiten
  • Alexandre de Streel
  • Martin Peitz

Abstract

When AI systems possess the characteristics of autonomy and unpredictability, they present challenges for the existing liability framework. (Semi)-autonomous AI systems shift control over these systems away from users and towards producers, while errors of AI systems may be difficult to foresee. Policymakers are faced with the questions when existing civil liability rules do not adequately cover risks arising in the context of AI systems, and how they then should be adapted. This paper addresses these two questions for EU non-contractual liability rules. It considers how liability rules affect the incentives of producers, users, and bystanders that may be harmed by AI. The paper provides concrete recommendations for updating the EU Product Liability Directive and for an EU liability framework for owners and users of AI.

Suggested Citation

  • Miriam Buiten & Alexandre de Streel & Martin Peitz, 2022. "The Law and Economics of AI Liability," CRC TR 224 Discussion Paper Series crctr224_2022_371, University of Bonn and University of Mannheim, Germany.
    • Handle: RePEc:bon:boncrc:crctr224_2022_371
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    File URL: https://www.crctr224.de/research/discussion-papers/archive/dp371
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    Cited by:

    1. Alessandro De Chiara & Juan José Ganuza & Fernando Gómez & Ester Manna & Adrián Segura, 2023. "Platform liability with reputational sanctions," Economics Working Papers 1868, Department of Economics and Business, Universitat Pompeu Fabra.

    More about this item

    Keywords

    Artificial Intelligence; EU law;

    JEL classification:

    • K13 - Law and Economics - - Basic Areas of Law - - - Tort Law and Product Liability; Forensic Economics
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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