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Liability for machine learning systems by Daniel Deutsch

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As more and more machines are supplied with machine learning algorithms, the question arises who is liable in cases of damage? Who is liable in case of accidents involving an autonomous driving car? Is there a difference when an autonomous lawnmower causes damage to the neighbour's property? Public interest in those questions is high, whereas legal opinions are rare and court decisions are missing. Daniel will show why it can be difficult to fit machine learning-based applications in the existing legal liability system, and what the future might look like.

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Liability for machine learning systems by Daniel Deutsch

  1. 1. CHANGES OF LIABILITY IN REGARD OF MACHINE LEARNING SYSTEMS
  2. 2. TABLE OF CONTENTS • About the Speaker • Introducing the Problem • Machine Learning / Autonomous Decision • Basics of Liability in Civil Law • Possible Solutions • Conclusion
  3. 3. ABOUT THE SPEAKER
  4. 4. DANIEL DEUTSCH, LL.M. (WU) • Topic Master thesis • Masters Business Law WU Wien • Bachelors Artificial Intelligence JKU Linz • Online Certifications Computer Science • Professional work as • Judicial Law Clerk at a district court • Web developer • Technical project manager
  5. 5. 5© Galacta 2020 – Strictly confidential OFFERING S IN DETAIL • Digital Lean • Digital Supply Chain • Digital Logistics • Strategy Execution • Online Learning • Offline / Blended Learning • Case Study Workshops • Online learning platform • Gamified content creation • Blockchain CONSULTING LEARNING TECHNOLOGY CONSULTANT AT GALACTA WITH FOCUS ON AI - https://www.galacta.com/
  6. 6. INTRODUCING THE PROBLEM
  7. 7. DILEMMA SITUATIONS – ”TROLLEY PROBLEM” Zapyon Trolley problem.png CC BY-SA 4.0 https://de.wikipedia.org/wiki/Datei:Trolley_Problem.svg#/media/Datei:Trolley_Problem.svg
  8. 8. MORAL MACHINE - HTTP://MORALMACHINE.MIT.EDU/HL/DE
  9. 9. MACHINE LEARNING - AUTONOMOUS DECISION
  10. 10. THE AUTONOMOUS DECISION • autonomous = independent from human interaction? • unpredictable & not comprehensible (blackbox) • behavior analysis & evidence of causality Excerpt of Artificial Intelligence 3g https://www.publicdomainpictures.net/en/view-image.php?image=22954&picture=artificial-intelligence-3g CC0 Public Domain Lizenz.
  11. 11. LIABILITY IN CIVIL LAW
  12. 12. FOUNDATION compensation for damages – the liability for damages „casum sentit dominus“ interruption of grounds for attribution Verschuldensshaftung – “Fault-based liability” Gefährdungshaftung – “strict liability” Special cases of ABGB (General Civil Code) – e.g. §1320 & §1299
  13. 13. PROBLEMS • human element Verschuldenshaftung (fault-based) • requirement of dangerous activity • statutory basis Gefährdungshaftung (strict) special cases not applicable
  14. 14. POSSIBLE SOLUTIONS
  15. 15. CASE STUDY • autonomous lawnmower • gap in the fence • cutting flowers of the neighbor • Who is liable? • User (owner) of the robot • Manufacturer • Programmer
  16. 16. DE LEGE LATA • robot is not able to bear liability • Ingerenzpflicht – Sorgfaltsmaßstab (level of care) • depends on each single case Verschuldenshaftung (fault-based) • defective product on the market • product = embedded System • faulty / defective = disappointed expectation of security • manufacturer has high risk of liability for a small ability to control the activity of his products Produkthaftung (strict)
  17. 17. DE LEGE FERENDA Robot for claiming damages (Haftungssubjekt) Expanded Liability for products + Insurance system New strict liability (Gefährdungshaftung) • Unpredictability = creates liability • Orientation EKHG (Law on civil liability against motor vehicles and railway plants) • Accident & Activity • Liable Persons • Relief from liability
  18. 18. CONCLUSION
  19. 19. Race between innovation and regulation Waiting for decisions on the level of the EU Initiatives of the EU Legislative initiative procedure for AI related topics Evaluation of the directive on liability of defective products(85/374/EWG) Evaluation of the machinery directive(2006/42/EG) Ethic Guidelines for Trustworthy AI
  20. 20. LEGAL REQUIREMENTS implement (law) rules implemnt industry-specific experience implement general experience of life implement quality assurance and control options
  21. 21. THANK YOU FOR YOUR ATTENTION! • Contact https://www.createdd.com/ • Disclaimer The information and statements of this presentation are for general information only and do not constitute legal information or legal advice. • © Copyright 2020 All contents of this presentation, in particular texts, photographs and graphics, are protected by copyright. Unless expressly stated otherwise, copyright lies with Daniel Deutsch. The content may not be copied, distributed, changed or made available to third parties for commercial purposes without permission.
  22. 22. QUESTIONS 1. How would you solve liability issues related to autonomous vehicles? 2. Have you had any experience with liability issues related to new technologies? 3. How would you solve the tension between innovation and regulation related to AI and liability? 4. Where do you see legal problems with AI in the future? 5. How do you solve existing legal problems in connection with new technologies?

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