Bruno Deffains (U Paris II Panthéon-Assas) and Claude Fluet (U Laval) have posted “Decision Making Algorithms: Product Liability and the Challenges of AI” on SSRN. Here is the abstract:
The question of AI liability (e.g., for robots, autonomous systems or decisionmaking devices) has been widely discussed in recent years. The issue is how to adapt non-contractual civil liability rules and in particular producer liability legislation to the challenges posed by the risk of harm caused by AI applications, centering on notions such as fault-based liability vs strict liability vs liability for defective products. The purpose of this paper is to discuss the lessons that can be drawn from the canonical Law & Economics model of producer liability, insofar as it can be applied to decision-making AI applications. We extend the canonical model by relating the risk of harm facing the users of an application to the risk of decisonmaking errors. Investments in safety, e.g. through better design and software, reduce the risk of decision-making errors. The cost of improving safety is shared by all users of the product.