Rethinking compensation in light of the development of AI

Nynke Vellinga

12 citations0/0 files storedInternational Review of Law Computers & Technology

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Digitalization, Law, and Regulation European and International Contract Law Comparative International Legal Studies

Abstract

The opacity, autonomy and complexity of AI systems can stand in the way of a fair and efficient allocation of risk and loss.The European Commission (EC) has recognized this and has addressed these matters in two proposals for two directives: the AI Liability Directive and a new Product Liability Directive.Both Directives address information asymmetries between parties in a liability claim by providing new rules on the burden of proof.In addition, the proposed Product Liability Directive has been brought 'up-to-date' by explicitly incorporating new technical developments and by ending the debate on software as a product.Nevertheless, the injured party might still not receive compensation for the damage caused by a defective AI-system.This gives rise to the question of whether the legal framework for compensation should be revised more boldly to ensure compensation for the damage suffered by the injured party.This contribution will explore such a bold approach by delving into compensation funds.More specifically, this contribution will examine how a compensation fund for damage caused by AIsystems can be designed as well as what its boundaries could or should be and what its benefits could be.

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2023The European AI liability directives – Critique of a half-hearted approach and lessons for the future 2013European Tort Law 2020Ethics of Connected and Automated Vehicles: Recommendations on road safety, privacy, fairness, explainability and responsibility 2015Splitting the Bill: Creating a National Car Insurance Fund to Pay for Accidents in Autonomous Vehicles 2022The European AI Liability Directives -- Critique of a Half-Hearted Approach and Lessons for the Future 2023The European Commission's approach to extra-contractual liability and AI – An evaluation of the AI liability directive and the revised product liability directive

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