Can I Be Held Accountable if My AI Tool Makes a Mistake?

Yes, your business can be held accountable if an AI tool makes an error, particularly if that mistake results in harm, loss, or regulatory breach. Accountability will depend on the specific circumstances, but there are several key legal considerations.

1. Product and operational liability: Emerging legal frameworks increasingly treat AI systems as products. If the AI is defective and causes damage whether physical, financial, or reputational you may face liability even in the absence of fault. This is especially relevant under incoming legislation such as the EU’s revised Product Liability Directive.

2. Negligent use or oversight: If your business uses AI without appropriate safeguards, fails to monitor outputs, or applies the technology beyond its intended scope, you could be found negligent. Accountability can arise where businesses rely on inaccurate AI results without human validation or where training and maintenance obligations are not met.

3. Contractual obligations: Where AI is integrated into your services or products, you may face liability to clients or customers if it performs incorrectly. Additionally, you may have recourse or obligations under supplier contracts depending on how the tool was procured and deployed.

4. Regulatory and sector-specific exposure: In regulated industries, improper AI use can lead to regulatory sanctions or professional liability. Businesses must also ensure AI use aligns with data protection, equality, and transparency obligations.

Whether the AI was built in-house or sourced externally, businesses remain responsible for ensuring that systems are used lawfully, ethically, and with appropriate oversight.