AI Negligence: When Is A Company Liable For Damages

When a customer suffers a financial loss or other harm as a result of misinformation negligently communicated by a company, we'd hope that the business would accept responsibility and offer the customer appropriate compensation.

But what if a company tries to shift blame elsewhere? Fortunately, consumer protection laws and other common law remedies have restricted some of the avenues used in an effort to escape liability. Unfortunately, one company recently tried a novel argument in court that could have opened up a new one.

"It was the employee's error, not ours."

• Perhaps, but as an employer you have vicarious liability for an employee's actions in the course of their work.