AI Strict Liability Vis-à-Vis AI Monopolization

Abstract

Some argue that applying a strict liability regime on AI-inflicted damages may lead to the monopolization of the AI industry. Strict liability is considered to be a regime that inherently stifles innovation given the costs it may inflict on companies. Therefore, the argument continues, it should not be applied on emerging technologies, such as AI. A strict liability regime can erect barriers to entry in the AI market in a way that will prevent small AI companies from competing. This is because these small companies lack the necessary resources to pay for damages inflected by their AI technology, leaving the industry to be monopolized by well-financed big AI companies. This Article rejects this argument and the implied correlation between an AI strict liability regime and the monopolization of the AI market. It does so for two reasons. First, there is no substantial connection between a strict liability regime and AI monopolization that is already underway. Second, insurance policies are available to mitigate the effects a strict liability regime may have on the capabilities of small AI companies to enter and compete in this important market. Therefore, the ongoing process of monopolization of the AI market should not render strict liability as a non-viable regime when AI-inflicted damages occur.