The disruptive quality of certain technologies is an overarching theme affecting the re/insurance industry. Technology’s impact on the efficiency gain in various industries has the potential to permanently change how we do business and support our clients. Technology, however, does not only affect the competitive and business environment, but also the social environment. Radical medical innovation improves life expectancy. Furthermore, social media has allowed society to collaborate and share information on a global level. Human-machine interaction in the personal and work space, e.g. in the form of smart platforms or the demand for digital experts in the labour market, will continue to increase and impact our understanding of community, consumer behaviour and the future of work. Technology can also put an additional strain on efforts to increase social and economic equality but also could disrupt labour markets and undermine people’s sense of economic security.
The rising importance and capability of robotics, artificial intelligence (AI) and self-learning machines pose questions about the changing status of intelligent machines. If the latter are able to assume increasing numbers of human tasks, if they can learn and adapt, and ultimately make decisions for human beings, should they still be treated as inanimate objects? Initially at least, could a robot manufacturer or a robot itself, or an autonomous car be held accountable for its decisions, and thus made liable for eventual damage caused?
Is it reasonable to establish a new legal personality for autonomous systems like ‘electronic persons’ with specific rights and obligations, and make them liable for harm caused to third parties?1 Should, in such a case, the manufacturers of these intelligent machines be freed of their responsibilities for injuries and damages caused by the machine’s autonomous decision?
Discussions about future liability regimes and financial security instruments tailored to respond to the liability risks associated with autonomous systems in general, and with robotics/AI/machine learning have, in particular, gained momentum in the European Union. In the current EU product liability framework, product liability focuses on the strict liability of the manufacturer/importer for bodily injury and property damage caused by the defect of the product.
The ongoing review of product liability might bring major shifts to the very concept of liability, and gaps in consumer protection.
The case illustrates the ambiguities raised by artificial intelligence. The uncertainties as to stringent future regulations are underlined by differing cultural attitudes toward machine intelligence and robotics in different parts of the world.
Potential impact of AI:
- Discussions on future liability regimes gain importance with the take-off of autonomous systems and robotics in general, and with artificial intelligence and machine learning in particular.
- Shifts from the current liability regimes could leave consumers with more vulnerability.
- Implementation of mandatory financial security requirements may negatively impact the development of voluntary insurance solutions.
- AI and increased capabilities of robots highlight the questions regarding the role of human decision making in automated processes and the ways in which human ethical frameworks relate to non-humans.
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