Now that artificial intelligence (AI) systems are actively used to make decisions, carry out analyses and generate content, a new area of legal liability has emerged. Unlike traditional technologies, AI systems can analyse large amounts of data, produce results within their own working model and, in some cases, influence decision-making without human intervention.

In light of these developments, one of the most important legal questions is this: when harm arises because of AI, who is liable?

When an AI system produces an incorrect result, liability may need to be assessed differently for the software company that developed the system, the business that uses it, the service provider or the person who operates it.

AI liability law is a new-generation field of law that aims to determine the damage, legal obligations and liability relationships that may arise from the use of AI systems.

How Does Legal Liability Arise from AI?

AI systems are not entities with legal personality of their own. It is therefore not possible to hold the AI itself directly liable for a decision it makes or a result it produces.

Liability is assessed with reference to the natural and legal persons who develop, provide, use or supervise the system.

If an AI system malfunctions, uses incorrect data, produces unforeseeable results, or if the necessary security measures are not taken, liability may arise under different areas of law.

Who Is Responsible for AI Errors?

When damage caused by AI occurs, it is not always possible to identify a single responsible party. Depending on the circumstances of the case, liability may be assessed among different persons.

The company that develops the AI software may be liable for problems arising from the technical safety and design of the system.

The business that uses the AI system, on the other hand, may be subject to a liability assessment based on the purpose for which it used the system, whether it carried out the necessary checks and how it managed the results.

In particular, for companies that use AI in their commercial activities, taking the position “I only used the system, so I am not responsible” may not be legally sufficient.

AI and Product Liability

When AI systems are used within a product or service, new questions arise in terms of product liability.

For example, if an AI-assisted device makes a wrong decision, a health technology produces an incorrect result or autonomous systems cause harm, the liability relationship between the manufacturer, the developer and the user becomes important.

At this point, the safety of the product, its intended use, its technical features and the information given to the user are taken into account in the legal assessment.

AI and Fault-Based Liability

In existing legal systems, fault is generally an important element in assessing liability. With AI systems, however, determining who is at fault can become more complex than with traditional methods.

When an algorithm produces an unexpected result, it must be investigated whether this is due to a software error, a data quality problem, a user error or inadequate supervision.

For this reason, it is very important to keep records of the development and use of AI systems.

Examples of AI-Caused Harm

Harm caused by AI systems can arise in different ways.

Examples of situations that may give rise to legal liability include a recruitment algorithm producing discriminatory results against certain candidates, a financial analysis system making an incorrect assessment, a system used in healthcare making a wrong recommendation, or generative AI disclosing trade secrets.

In each case, the source of the harm, the way the system works and the obligations of the parties must be examined separately.

Liability under KVKK

Many AI systems work by using personal data. For this reason, a significant part of the harm caused by AI is also assessed under personal data protection law.

Unlawful processing of personal data, failure to ensure data security or uncontrolled automated assessments that affect people’s rights may give rise to liability under the Law on the Protection of Personal Data No. 6698 (KVKK).

When using AI systems, companies need to plan their data processing activities, security measures and the information they give to users carefully.

AI and the Problem of Discrimination

Because AI systems learn from past data, in some cases they may reproduce existing biases.

Algorithmic discrimination is a significant legal risk, particularly in areas that directly affect people’s lives, such as human resources, finance and insurance.

An AI system working correctly from a technical point of view does not always mean that it produces a legally fair result.

AI Risk Management for Companies

To reduce the liability risks that may arise, companies using AI need to adopt a preventive legal approach.

In this context, it is important to identify the AI systems in use, carry out risk analyses, set limits on use and raise employees’ awareness.

Adopting AI use policies gives companies legal certainty in possible disputes and also helps them use the technology in a controlled way.

Contracts with AI Service Providers

Many companies obtain AI technologies from external service providers. Contracts with these providers are therefore critical in determining how liability is shared.

The contracts need to regulate clearly data use, security obligations, system errors, service interruptions, intellectual property rights and liability in the event of damage.

Contract terms that are left vague may create serious legal risks for companies later on.

The Approach to Liability under the AI Act

The European Union Artificial Intelligence Act (AI Act) adopts a risk-based regulatory approach that aims to ensure AI systems are used safely, transparently and under human control.

Particularly for high-risk AI systems, providers and users are expected to fulfil certain obligations.

These rules will form an important legal framework for assessing harm caused by AI in the future.

Future Legal Issues in AI Liability

As AI technologies develop, liability law will face new questions.

Decisions made by autonomous systems, AI-assisted healthcare applications, the use of personal data and algorithmic management models are among the important areas of legal debate in the future.

For this reason, companies need to treat AI not only as a technological tool but as a system with legal consequences.

Legal Certainty in the Use of AI

When used correctly, AI technologies can offer businesses considerable advantages. However, for these advantages to be sustainable, the legal risks need to be assessed in advance.

Liability analyses, contractual arrangements, data protection processes and internal AI policies are the basic elements of the safe use of AI.

In the age of AI, the companies that do well will be those that not only use the technology but can also manage its legal consequences.