Agentic AI Liability In Autonomous Supply Chain Decisions: Identifying And Preventing Legal Risks

Agentic AI refers to an artificial intelligence system designed to achieve specific goals with minimal human supervision. Unlike traditional AI models that operate within predefined constraints and require human intervention, agentic AI exhibits autonomy, goal-driven behavior, and adaptability.

Key Takeaways:

• Agentic AI systems capable of autonomous supply chain decisions are already being used by major companies like Walmart and Flexport, and adoption is accelerating across the manufacturing sector.
• Standard AI vendor contracts typically cap liability at fees paid and exclude consequential damages leaving manufacturers exposed when autonomous decisions trigger excess inventory, stockouts, unnecessary freight costs, or product damage.