Template-Type: ReDIF-Paper 1.0 Title: The Law and Economics of AI Liability Author-Name: Miriam Buiten Author-Name: Alexandre de Streel Author-Name: Martin Peitz Author-Email: martin.peitz@gmail.com Classification-JEL: K13, O33 Keywords: Artificial Intelligence, EU law Abstract: When AI systems possess the characteristics of autonomy and unpredictability, they present challenges for the existing liability framework. (Semi)-autonomous AI systems shift control over these systems away from users and towards producers, while errors of AI systems may be difficult to foresee. Policymakers are faced with the questions when existing civil liability rules do not adequately cover risks arising in the context of AI systems, and how they then should be adapted. This paper addresses these two questions for EU non-contractual liability rules. It considers how liability rules affect the incentives of producers, users, and bystanders that may be harmed by AI. The paper provides concrete recommendations for updating the EU Product Liability Directive and for an EU liability framework for owners and users of AI. Note: Length: 29 Creation-Date: 2022-11 Revision-Date: File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp371 File-Format: application/pdf Handle: RePEc:bon:boncrc:CRCTR224_2022_371