The Law and Economics of AI Liability

Miriam Buiten, Alexandre de Streel and Martin Peitz

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

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.

Keywords: Artificial Intelligence; EU law (search for similar items in EconPapers)
JEL-codes: K13 O33 (search for similar items in EconPapers)
Pages: 29
Date: 2022-11
New Economics Papers: this item is included in nep-law, nep-reg and nep-rmg
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2022_371

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