Bridging the Liability Gaps: Why AI Challenges the Existing Rules on Liability and How to Design Human-empowering Solutions

Abstract

This chapter explores the so-called ‘liability gaps’Liability gaps that occurs when, in applying existing contractual, extra-contractual, or strict liabilityStrict liability rules to harms caused by AI, the inherent characteristics of AI may result in unsatisfying outcomes, in particular for the damaged party. The chapter explains the liability gapsLiability gaps, investigating which features of AI challenge the application of traditional legal solutions and why. Subsequently, this chapter explores the challenges connected to the different possible solutions, including contract lawContract law, extra-contractual law, product liabilityProduct liability, mandatory insuranceInsurance, company lawCompany law, and the idea of granting legal personhoodLegal personality/personhood to AI and robots. The analysis is carried out using hypothetical scenarios, to highlight both the abstract and practical implications of AI, based on the roles and interactions of the various parties involved. As a conclusion, this chapter offers an overview of the fundamental principles and guidelines that should be followed to elaborate a comprehensive and effective strategy to bridge the liability gapsLiability gaps. The argument made is that the guiding principle in designing legal solutions to the liability gapsLiability gaps must be the protection of individuals, particularly their dignity, rights and interests.