AI Product Liability is a rapidly growing and complex area of law regarding liability for damages caused by Artificial Intelligence systems. When traditional software fails, it often causes mere inconvenience, but when an autonomous AI system (e.g., a self-driving car, medical robot, or financial algorithm) makes an error, the result can be physical injury, property damage, or human rights violations. The main legal challenge here is the "Black Box" problem—it is often difficult to determine whose fault the error is: the developer's, the data provider's, the user's, or the algorithm's "unforeseen behavior." In Georgia, where product safety legislation is evolving, it is crucial to clearly define the scope of liability.
Our service targets both AI product manufacturers (prevention and defense) and injured parties (damage compensation). The service covers:
- Liability Assessment: Analyzing which legal regime applies in a specific case—Strict Liability or Fault-based Liability.
- Establishing Causation: Technical and legal expertise to prove that the damage was indeed caused by the AI system's defect and not other circumstances.
- Preventive Contracts: Allocating liability in contracts between the software provider and the client.
- Damage Calculation: Assessing material (property), health-related, and moral damages.
- Court Representation: Defending interests in court regarding tort (delictual) obligations.
Let's consider several scenarios. First: A farmer uses an AI-based drone to spray crops. Due to a system glitch, the drone crashes into a neighbor's car. Who is liable—the drone manufacturer, the software coder, or the farmer? The answer depends on whether the defect existed in the product from the start. Second scenario: A Robo-advisor loses a client's retirement savings due to an algorithmic error. The issue here is whether the client was warned about risks and if the system operated within set parameters. Third case: A "Smart Home" system fails to detect smoke during a fire, leading to damage. This is a classic product liability case.
In Georgia, AI liability issues are regulated by the Civil Code of Georgia (Tort obligations, Articles 992 et seq.). Specifically, articles concerning damage caused by defective products are relevant. The Product Safety and Free Movement Code and the Law on Protection of Consumer Rights also apply. The EU is currently working on a specific "AI Liability Directive," which will likely be reflected in Georgian legislation in the future. At this stage, correct interpretation of general civil principles in a technological context is decisive.
The process begins with a detailed investigation of the incident. Lawyers, together with technical experts, study system logs and documentation. If you are a manufacturer, we help you prove that you followed all safety standards (State of the art defense). If you are a victim, we assist in gathering evidence that the damage was caused precisely by the algorithm's malfunction.
Legal.ge offers access to lawyers who understand both law and technology. Disputes related to AI systems require specific knowledge that a standard civil law attorney might not possess. Protect your rights and business with the help of professionals.
Updated: ...