MY AI DID IT: INTERMEDIARY LIABILITY FOR AI?
Ryan E. Long
Long & Associates
More companies are outsourcing their decisions to employ artificial intelligence ("AI"). For example, the market for AI powered facial recognition technology was valued at $3.72 billion in 2020 and is projected to grow to $11.62 billion by 2026.1 Similarly, the marketplace for the use of AI in assisting consumer spending decisions is slated to grow at a Compound Annual Growth Rate of 34.4% to $19.9 billion by 2027.2
This has raised the question in recent litigation of whether "my AI did it" can be an acceptable defense to claims including, among others, privacy violations or even copyright infringement. In some cases, vicarious or secondary liability doesn’t apply. This article addresses some more recent case law on the issue involving AI. It also summarizes the Algorithmic Accountability Act of 2022 and its potential effect on liability for reliance on AI-based decision making.