DEER ISLE: Insights, Views & Investment Trends
“AI” Liability – Who Takes the Risk?
As more and more activities are turned over to AI – one of the big questions will be “who assumes the risk for fails in the system?”.
The answer is complex.
Take the case of self-driving vehicles (Tesla being a prime example). Can they ever become truly autonomous? If they do – will the car companies be the ones held liable? The developers of the AI systems if 3rd party systems are part of the system? The “person” who is supposed to be monitoring the system? The government if the system is developed around government supplied systems? Others?
All of these systems are built upon millions of instances, and they cannot make judgements as a person is able to do. This has been demonstrated by the Tesla crashes that have occurred – they have generally occurred when a situation has presented itself where it has not been trained. For instance, when a turned over truck is in the road at a strange angle and the system does not recognize it as an obstacle, so the car runs into the truck. Tesla, at the moment, clearly states that its autonomous systems need to be monitored by the driver (ie: the driver is still responsible for any liabilities).
Tesla has been very successful in China and given the number of vehicles China would be a prime target to continue to train the cars. Elon Musk apparently wanted to enter into an Agreement with the Chinese government to create truly autonomous driving cars there and to monitor the cars there to gain more and more access to the data that is required to continue to train the systems. In this scenario – Tesla was apparently willing to take the liability risk and was going to guarantee all outcomes. It is, however, unlikely that this training will be approved by the Chinese given that the data which would given to Tesla would represent an enormous amount of data about the Chinese people. So, the question remains – will the liability ever switch from a person to the AI provider?
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Capital Provider Interest: Lender looking to lend for 6 months to 1-year general obligation loans to borrowers with $5 million to $100 million in revenues and a minimum of $1 million EBITDA. Lent amounts can be up to $20 million.
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