Artificial Intelligence: Liability and Economy Issues

Rasmus Juul Wagner

Student thesis: Master thesis

Abstract

In this paper, I discuss Artificial Intelligence, which is expected to take over 40% of current work with existing technology. Describing tort & insurance law as it applies to Artificial Intelligence today, using legal dogmatism, I find that neither Danish law nor American case law have clear answers. After reviewing why and how compensation law works, I argue, using legal economics, that artificial intelligence should be strictly liable for damages and that the owner should be legally obliged to take out liability insurance. Using microeconomics and industrial economics I show that it is not Kaldor-Hicks efficient for a business to replace a person with a machine. I demonstrate the effects of Artificial intelligence on the law industry, and predict that many of the small law firms will close in a few years. I also demonstrate that price algorithms and market surveillance are serious threats to competition, and that systems that work properly, and the systemic damage they can cause, is a much bigger problem than machines that do not work properly and the occasional damage they may cause.

EducationsMSc in Commercial Law, (Graduate Programme) Final Thesis
LanguageDanish
Publication date2017
Number of pages50
SupervisorsAndrej Savin