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DEPLOYING ARTIFICIAL INTELLIGENCE: THE LEGAL SIDE OF THINGS

Introduction

The rapid growth of artificial intelligence (AI) technologies, having transformed industries and our way of living, has also raised complex legal questions about accountability and liability. As AI systems become integral to various business operations, the allocation of responsibility for AI-related actions and their consequences is of paramount importance. In this article, we highlight the legal dimensions in the deployment of AI and how businesses can navigate this evolving landscape.

Creators and Users

Businesses deploying AI solutions must understand the implications of accountability, both from a legal and commercial perspective. Identifying the key stakeholders in AI accountability is essential for managing risks and ensuring ethical conduct. The primary responsibility lies with the commercial entities that develop, implement, or operate AI systems, integrating AI solutions into their operations. These entities are responsible for ensuring that their AI systems meet regulatory and ethical standards and do not cause harm to clients, customers, or third parties.

Businesses that use AI systems also play a crucial role in accountability. They must use AI technology in a manner consistent with legal and ethical guidelines. Ignorance of AI capabilities, or failing to provide adequate oversight, can expose commercial users to liability.

The Legal Side of Things

AI technologies have evolved significantly in recent years. Machine learning algorithms, deep learning neural networks, and natural language processing have made AI capable of performing complex tasks that were once the exclusive domain of humans, and even tasks beyond human ability. There are legal frameworks that ensure accountability and liability with significant impact on AI. Businesses must be aware of the existing legal landscape to protect themselves and their stakeholders. Some legal considerations include:

  1. Strict Liability: This approach holds AI developers, manufacturers, users and operators liable for harm caused by AI systems. AI developers and manufacturers are responsible for designing AI systems that adhere to legal standards, and the users and operators have the duty to use the AI systems responsibly and ethically. The torts law principle of strict liability will apply in situations if the AI systems are designed negligently by developers and manufacturers. The Law Reform (Torts) Law of Lagos State[1] establishes a statutory cause of action by placing strict liability on producers of faulty goods and stating that a producer or manufacturer, importer, supplier, or retailer is accountable for damage brought on whole or in part by a faulty good. The Occupier’sLiability Act[2] has similar provisions with the Law Reform (Torts) Law of Lagos State.
  1. Contractual Obligations: Businesses must include clear and comprehensive AI-related clauses in contracts. This includes delineating responsibilities, warranties, and liabilities in contracts with AI developers and service providers.
  1. Regulatory Compliance: Compliance with industry-specific regulations and data protection laws, such as the NDPR in Nigeria and GDPR in Europe, play a crucial role in AI accountability. Commercial entities must ensure that AI solutions adhere to regulatory requirements and standards. It is also important that users become aware of their rights under these laws.

It is noteworthy that the legal landcape for the regulation of AI in Nigeria, and in many parts of the quite inadequate. Our laws must evolve and continue evolving to meet the ever dynamic world of AI and digital technology.

Conclusion

AI is a powerful and transformative technology, but it also raises complex questions about accountability and liability. As AI technologies continue to advance and become more integrated into business operations, navigating the complexities of accountability is vital for mitigating risks and ensuring ethical conduct. Businesses must stay informed about the evolving legal landscape, while also upholding high ethical standards to protect their commercial interests and maintain the trust of their clients and partners in an AI-driven world.


[1]  Chapter L82 of the Law of Lagos State, 2015

[2] 1957

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