Artificial Intelligence as a Product in Liability Litigation

Shift in AI Litigation Focus: AI litigation is increasingly converging on product liability as the primary legal framework.
Characterizing AI Products: Early cases are exploring whether consumer-facing AI applications should be treated as products with potential design defects or inadequate warnings.
Legislative Influence: The EU’s revised directive on liability for defective products and various US state enactments support the application of product liability concepts to AI.
Case Examples: Cases like Garcia v. Character Technologies, Inc. and Raine v. OpenAI illustrate how plaintiffs frame arguments around AI systems as products.
Broader Liability Scope: Product liability extends beyond developers to those who brand and supply components for the AI product, emphasizing supply-chain responsibility.
Regulatory Trends: Policies aim to establish the framework for product versus service with an emphasis on defects and foreseeability, impacting plaintiff strategies.
Future Litigation Predictions: Courts will continue to establish the distinction between products and services in AI and expand liability up and down the supply chain.
Defensive Strategies: Companies are advised to clearly define their AI products and document design and safety choices to manage litigation risks.

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