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ARTICLE · 23 OCTOBER 2024

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Navigating AI With Pestalozzi – Part 3: Liability

Pestalozzi
Pestalozzi
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Pestalozzi

Pestalozzi

Pestalozzi is a multicultural Swiss business law firm focusing on high-end work for domestic and...

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In principle, AI-deploying companies are liable for AI output or actions generated by them just as if they had generated the output or acted without the use of AI.

SwitzerlandTechnology
Sarah Drukarch
Sarah Drukarch
Markus Winkler
Markus Winkler
Myrtha Talirz
Myrtha Talirz
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Key Takeaways

  • In principle, AI-deploying companies are liable for AI output or actions generated by them just as if they had generated the output or acted without the use of AI. This means that AI-deploying companies are liable if they wilfully or negligently use AI tools so that it constitutes a breach of contract or tort, and if this AI use causes damage to others. Therefore, diligence is key when offering AI-powered services.
  • In the future, AI providers and, depending on the level of the AI tool customization, also AI-deploying companies may face strict (i.e., non-fault based) liability regarding injured individuals for personal or property damage as well as damage arising from corrupted or destroyed data. Because most likely, over time, Switzerland will align its product liability legislation with pending new EU legislation. For the time being, providers are only exposed to such liability if they sell tangible products with AI embedded.

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