Insights

PUBBannersocialWhosLiableWhenAITakestheW

Who's Liable When AI Takes the Wheel? New Frontiers of Civil Liability and Risk Mitigation Strategies in the EU and the U.S.

The emergence of fully autonomous vehicles is fundamentally transforming the landscape of civil liability within the automotive industry. Significant regulatory advancements, evolving case law, and emergent tort doctrines in both the European Union and the United States are actively redefining liability allocation across the entire technology and manufacturing supply chain. This necessitates a proactive update of risk mitigation strategies and a reevaluation of vehicle owners' responsibilities.

The shift toward automated driving technologies is consequently redirecting civil liability exposure to technology providers, component suppliers, and automotive manufacturers. This evolution demands a comprehensive rethinking of traditional civil liability frameworks, with particular focus on four pivotal areas: liability for product and algorithmic defects, cybersecurity and data privacy concerns, the intricate interconnected ecosystem and associated third-party liabilities, and the emergence of new duties for vehicle owners.

Therefore, it is crucial for all automotive industry participants to adopt forward-looking risk mitigation strategies. By implementing robust quality controls, ensuring strict regulatory compliance, and cultivating transparent supply chain relationships, stakeholders can more effectively navigate the complexities of this new era. This approach will help guard against the multifaceted risks linked to automated driving systems, while simultaneously upholding accountability and safeguarding potential victims.

Read the White Paper.

Insights by Jones Day should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. To request permission to reprint or reuse any of our Insights, please use our “Contact Us” form, which can be found on our website at www.jonesday.com. This Insight is not intended to create, and neither publication nor receipt of it constitutes, an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm.