B2B Artificial Intelligence Transactions: A Framework for Assessing Commercial Liability

24 Pages Posted: 25 Mar 2022

See all articles by Ernest Lim

Ernest Lim

National University of Singapore (NUS) - Faculty of Law

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Date Written: February 3, 2022

Abstract

Business to business (“B2B”) artificial intelligence (“AI”) transactions raise challenging private law liability issues because of the distinctive nature of AI systems and particularly the new relational dynamics between AI solutions providers and procurers. This article advances a three-stage framework comprising data management, system development and implementation, and external threat management. The purpose is to unpack AI design and development processes involving the relational dynamics of providers and procurers in order to understand the parties’ respective responsibilities. Applying this framework to English commercial law, this article analyses the potential liability of AI solutions providers and procurers under the Supply of Goods and Services Act and the Sale of Goods Act. The assumption that only AI solutions providers will be subject to liability, or that no party will be liable due to the “autonomous” nature of AI systems, is rejected.

Keywords: AI, Machine Learning, Commercial Law, Sale of Goods Act, Supply of Goods and Services Act

Suggested Citation

Lim, Ernest, B2B Artificial Intelligence Transactions: A Framework for Assessing Commercial Liability (February 3, 2022). Available at SSRN: https://ssrn.com/abstract=4025415 or http://dx.doi.org/10.2139/ssrn.4025415

Ernest Lim (Contact Author)

National University of Singapore (NUS) - Faculty of Law ( email )

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Eu Tong Sen Building
Singapore, 259776
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