Managing Litigation Risks Of Artificial Intelligence

Summary

Artificial Intelligence ("AI") use in business has proliferated in recent years; risks arising from this therefore must be managed. Whilst the use of AI can drive significant efficiency gains for most businesses, the characteristics of machine learning mean that there is the potential for data protection and discrimination claims to arise (amongst others). We explore some of the potential litigation risks in the UK arising and how these risks can be managed.

Whilst algorithms have been used to replace human processes for decades, AI integrates machine learning, which is intended to mimic human learning and enable systems to perform tasks commonly thought to require human intelligence. This can bring significant efficiency gains for companies; from analysing data and streamlining processes, to making decisions. However, the ability of AI to "learn" increases the litigation risk for businesses when systems go wrong. We focus on three of the