AI Companies Could Face Significant Liability for Harms to Consumers

Recently, a number of lawsuits against AI companies have sought to use product liability theory and strategy to hold them accountable for injuries to consumers, especially minors. Some pundits have called this a Big Tobacco moment— using product liability law in this context is novel; but these theories were also successfully used to go after big tobacco companies in the 1990s and to achieve multibillion dollar settlements and changes to cigarette marketing. One of the most prominent pieces of current AI litigation is Florida’s first-in-the-nation lawsuit against OpenAI and its CEO Sam Altman based on the accusation that ChatGPT advised the gunman in a fatal shooting at Florida State University. If you were injured by AI, please give our seasoned Chicago-based product liability lawyers a call. We have many years of experience, and billions of dollars have been recovered in cases with which we’ve been involved.

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The Florida AI lawsuit alleges, among other things, that the company knowingly and aggressively marketed ChatGPT to the public, while hiding significant risks and suppressing safety warnings. Plaintiffs argue that ChatGPT is a dangerous product that has caused users to perpetrate violent acts or suffer from mental health problems. OpenAI, meanwhile, has denied it has done anything wrong.

The Florida AI lawsuit and private lawsuits similar to it are using a product liability strategy similar to the one simultaneously being used against significant social media platforms; they are claiming the AI is defective (large social media companies like Meta have been held accountable for failing to put in place safeguards against sexual predators and addiction). Product liability strategies are especially important because Congress has lagged in enacting federal AI safety regulation that would apply in every state across the country. Without uniform federal standards for the development and implementation of AI, each state is left to enact different and potentially contradictory standards.

The Florida AI lawsuit is particularly significant because it could cause other states’ attorney generals to file similar suits to act in the interest of the general public. While individual plaintiff’s cases are important for redress, the actions of many attorney generals pursuing lawsuits against AI companies could create substantial changes in how the companies design their product.

One of the notable differences between holding companies accountable for AI chatbots and other speech-related products has to do with laws like Section 230 of the Communications Decency Act; this law is generally based on the idea that a person who is harmed by online content must sue the user who posted the speech, not the tech platform. Since it was enacted decades ago, this law has been used by many tech companies to defend against many different types of litigation involving online activity. However, lower court judges have determined that this law may not apply in some cases when the issue is not the speech that is being posted, but how a platform is designed.

Similarly, AI companies may not be able to use section 230 to defend themselves in litigation like the Florida AI case because a chatbot, which is not human, is producing the speech that is considered harmful; since a chatbot is not human, it cannot be sued and the only remaining party to hold responsible is the tech company that designed the AI. The First Amendment may also factor into the outcome of these cases.

However, it’s also important to note that in many jurisdictions whether harm was reasonably foreseeable impacts whether experts and courts find a design defect; this question of foreseeability might present an issue in the AI lawsuits because there is a much shorter history from which harm could be foreseen for AI than there is for tobacco or social media.

Discuss Your Child’s Injuries with a Product Liability Attorney

Individual product liability lawsuits are important to obtaining redress for harm to you or your family. If you or your child was harmed by an AI chatbot, please call the knowledgeable Chicago-based product liability lawyers of Moll Law Group to determine whether you have a viable claim for damages. Complete our online form or call us at 312.462.1700.