AI Liability Along the Value Chain


Report by Beatriz Botero Arcila: “…explores how liability law can help solve the “problem of many hands” in AI: that is, determining who is responsible for harm that has been dealt in a value chain in which a variety of different companies and actors might be contributing to the development of any given AI system. This is aggravated by the fact that AI systems are both opaque and technically complex, making their behavior hard to predict.

Why AI Liability Matters

To find meaningful solutions to this problem, different kinds of experts have to come together. This resource is designed for a wide audience, but we indicate how specific audiences can best make use of different sections, overviews, and case studies.

Specifically, the report:

  • Proposes a 3-step analysis to consider how liability should be allocated along the value chain: 1) The choice of liability regime, 2) how liability should be shared amongst actors along the value chain and 3) whether and how information asymmetries will be addressed.
  • Argues that where ex-ante AI regulation is already in place, policymakers should consider how liability rules will interact with these rules.
  • Proposes a baseline liability regime where actors along the AI value chain share responsibility if fault can be demonstrated, paired with measures to alleviate or shift the burden of proof and to enable better access to evidence — which would incentivize companies to act with sufficient care and address information asymmetries between claimants and companies.
  • Argues that in some cases, courts and regulators should extend a stricter regime, such as product liability or strict liability.
  • Analyzes liability rules in the EU based on this framework…(More)”.