There is no question that artificial intelligence is surging in Canada. During the first quarter of 2018 alone, $89 million was invested into Canadian AI companies.

To date, critics evaluating the legal impact of AI have largely focused on concerns related to the protection of individual privacy, security issues and, of course, ethics and bias. Other areas of legal concern associated with AI usage have received less airplay, including product liability.

However, as the use of AI proliferates and as the systems themselves become more autonomous, the risk that they will cause harm to property or individuals naturally increases. It is now unclear how and if the existing Canadian legal framework will apply to damages or losses resulting from AI use or operation.

For example, will software-based AI systems offered as a service be deemed to be products?

Defective products laws could apply when AI systems do not perform as intended and cause damages or injuries to a person or property. In Canada, those seeking redress will look to the legal concepts of tort, contract and, in certain instances, consumer protection legislation.

This article was originally published in Canadian Lawyer Online. To read the full article, click here.

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