Key legal issues related to AI – AI Law

Artificial intelligence (AI) is rapidly advancing and is increasingly being integrated into various
industries and aspects of our lives. As AI becomes more advanced, it raises a number of legal
and ethical issues that need to be addressed

Data privacy and protection

One of the most important legal issues related to AI is data privacy and protection. AI
algorithms rely on large amounts of data to learn and make predictions. As such, laws around
data privacy and protection, such as the General Data Protection Regulation (GDPR), will be
crucial to ensure that personal data is protected and individuals’ rights are respected.
Businesses must ensure that they comply with data protection laws, by implementing
appropriate technical and organizational measures to protect personal data and obtaining
informed consent from individuals before collecting and using their data.

AI bias and discrimination

Another key legal issue related to AI is bias and discrimination. AI systems have the potential
to perpetuate or even amplify bias and discrimination in decision-making. Laws and
regulations will be needed to ensure that AI systems are fair and unbiased, and that
individuals who have been affected by discrimination have avenues for redress. Businesses
must ensure that they are aware of the potential biases in the data they are using, and
implement mechanisms to detect and correct them. For instance, the use by large employers
of AI systems to help screen applicant resumes and even analyse recorded job interviews is
rapidly growing. If AI penalizes candidates because it cannot understand a person’s accent
or speech impediment, for instance, that could potentially lead to illegal employment
discrimination. While this will only become a legal issue in certain contexts (such as the
workplace), the use of AI has the potential to create discriminatory effects in other
association settings (e.g., membership and volunteer leadership) and needs to be carefully
addressed.

Transparency and Explainability = Result in Tort

Transparency and explainability are also important legal issues related to AI. AI systems can
be opaque and difficult to understand, making it hard for individuals to understand how
decisions are being made. Laws and regulations will be needed to ensure that AI systems are
transparent and explainable, and that individuals can challenge decisions that have been
made by AI. Businesses must ensure that they are able to explain the decision made by their
AI systems and provide evidence of their fairness, accuracy and transparency.

Liability for AI
Liability is another key legal issue related to AI. As AI systems become more advanced, it can
be difficult to determine who is responsible for decisions made by the AI. Laws and
regulations will be needed to clarify liability and ensure that individuals and organizations are
held accountable for the actions of AI systems. Businesses must ensure that they are aware
of the legal liabilities associated with their AI systems and implement mechanisms to
mitigate them.
Insurance issue

Insurance is one of the solutions contemplated - in the United Kingdom for example - to
cover any legislative gap, with the introduction of Automated and Electric Vehicles Act 2018.
As a reminder, the gap identified regarding fully autonomous systems stems from the fact
they continuously learn from their environment, and that “defects” may no longer be
attributed to the manufacturer of the system. This regulation is an ad hoc solution for
autonomous vehicles but does not cover all types of autonomous systems.

Therefore, one of the first adjustments that can be made is to make sure an injured party
receives compensation for the damages he or she suffered, through insurance. This avoids
the need — at least for now — to go into detailed debates about which party is liable in case
of injury and wait for the courts to decide on matters or for authorities to issue complex
regulation

As in-house counsel, when negotiating a contract with an AI service provider, we may require
that they have AI or Machine Learning insurance, to make sure the liability gap is covered. To
make a balance, what India needs a legislation that covers the insurance that will cover the
risks following from the AI.

International governance
Lastly, international governance is a key legal issue related to AI as it is borderless. It raises
questions about international governance and which laws apply to AI. Laws and regulations
will be needed to ensure that AI is governed in a consistent and harmonized manner across
borders. Businesses must ensure that they are aware of the international laws and
regulations related to their AI systems and comply with them.