As more and more machines are supplied with machine learning algorithms, the question arises who is liable in cases of damage? Who is liable in case of accidents involving an autonomous driving car? Is there a difference when an autonomous lawnmower causes damage to the neighbour's property? Public interest in those questions is high, whereas legal opinions are rare and court decisions are missing. Daniel will show why it can be difficult to fit machine learning-based applications in the existing legal liability system, and what the future might look like.

1. CHANGES OF LIABILITY
IN REGARD OF
MACHINE LEARNING SYSTEMS

2. TABLE OF CONTENTS
• About the Speaker
• Introducing the Problem
• Machine Learning / Autonomous Decision
• Basics of Liability in Civil Law
• Possible Solutions
• Conclusion

3. ABOUT THE
SPEAKER

4. DANIEL DEUTSCH,
LL.M. (WU)
• Topic Master thesis
• Masters Business Law WU Wien
• Bachelors Artificial Intelligence JKU Linz
• Online Certifications Computer Science
• Professional work as
• Judicial Law Clerk at a district court
• Web developer
• Technical project manager

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6. INTRODUCING THE
PROBLEM

7. DILEMMA SITUATIONS –
”TROLLEY PROBLEM”
Zapyon Trolley problem.png CC BY-SA 4.0 https://de.wikipedia.org/wiki/Datei:Trolley_Problem.svg#/media/Datei:Trolley_Problem.svg

8. MORAL MACHINE - HTTP://MORALMACHINE.MIT.EDU/HL/DE

9. MACHINE
LEARNING -
AUTONOMOUS
DECISION

10. THE AUTONOMOUS
DECISION
• autonomous = independent from human
interaction?
• unpredictable & not comprehensible
(blackbox)
• behavior analysis & evidence of causality
Excerpt of Artificial Intelligence 3g
https://www.publicdomainpictures.net/en/view-image.php?image=22954&picture=artificial-intelligence-3g
CC0 Public Domain Lizenz.

11. LIABILITY IN CIVIL
LAW

12. FOUNDATION
compensation for
damages – the liability
for damages
„casum sentit
dominus“
interruption of
grounds for attribution
Verschuldensshaftung
– “Fault-based liability”
Gefährdungshaftung –
“strict liability”
Special cases of ABGB
(General Civil Code) –
e.g. §1320 & §1299

13. PROBLEMS
• human element
Verschuldenshaftung (fault-based)
• requirement of dangerous activity
• statutory basis
Gefährdungshaftung (strict)
special cases not applicable

14. POSSIBLE
SOLUTIONS

15. CASE STUDY
• autonomous lawnmower
• gap in the fence
• cutting flowers of the neighbor
• Who is liable?
• User (owner) of the robot
• Manufacturer
• Programmer

16. DE LEGE
LATA
• robot is not able to bear liability
• Ingerenzpflicht – Sorgfaltsmaßstab (level of care)
• depends on each single case
Verschuldenshaftung (fault-based)
• defective product on the market
• product = embedded System
• faulty / defective = disappointed expectation of
security
• manufacturer has high risk of liability for a small
ability to control the activity of his products
Produkthaftung (strict)

17. DE LEGE
FERENDA
Robot for claiming damages (Haftungssubjekt)
Expanded Liability for products + Insurance system
New strict liability (Gefährdungshaftung)
• Unpredictability = creates liability
• Orientation EKHG (Law on civil liability against motor vehicles
and railway plants)
• Accident & Activity
• Liable Persons
• Relief from liability

18. CONCLUSION

19. Race between innovation and regulation
Waiting for decisions on the level of the EU
Initiatives of the EU
Legislative initiative procedure for AI
related topics
Evaluation of the directive on liability
of defective products(85/374/EWG)
Evaluation of the machinery
directive(2006/42/EG)
Ethic Guidelines for Trustworthy AI

20. LEGAL
REQUIREMENTS
implement (law) rules
implemnt industry-specific experience
implement general experience of life
implement quality assurance and control
options

21. THANK YOU FOR YOUR
ATTENTION!
• Contact
https://www.createdd.com/
• Disclaimer
The information and statements of this presentation are for general information
only and do not constitute legal information or legal advice.
• © Copyright 2020
All contents of this presentation, in particular texts, photographs and graphics,
are protected by copyright. Unless expressly stated otherwise, copyright lies with
Daniel Deutsch. The content may not be copied, distributed, changed or made
available to third parties for commercial purposes without permission.

22. QUESTIONS
1. How would you solve liability issues related to autonomous vehicles?
2. Have you had any experience with liability issues related to new technologies?
3. How would you solve the tension between innovation and regulation related to AI
and liability?
4. Where do you see legal problems with AI in the future?
5. How do you solve existing legal problems in connection with new technologies?