Product Liability Issues in AI Systems

This talk will identify product liability risks in the U.S. to companies creating and offering artificial intelligence systems, the source of those risks, and how businesses can manage those risks. A focus on U.S. product liability is important from a worldwide perspective given the size of the U.S. market and the perception that the U.S. is a litigious country. Product liability is perceived as a greater threat in the U.S. than in any other country of the world. The talk will open with the circumstances giving rise to U.S. product liability litigation and the phenomenon of some U.S. cases resulting in huge awards to plaintiffs seeking compensation. It explains why these huge awards occur. Next, it will cover the human and financial impacts of more recent high profile product liability cases. The talk will turn to U.S. product liability law, focusing on the types of claims and defenses arising in product liability cases. Afterwards, the talk will cover design practices and procedures that companies can use to reduce the risk of AI product liability, the use of insurance as a means of shifting and managing product liability risk, and other risk management techniques.