Jargonautica
Governance, Law and Regulation

Liability and Indemnity

Who pays when the output causes harm. The position is unsettled and varies by jurisdiction and by what went wrong. Some providers now offer indemnity against copyright claims arising from their outputs, which is worth reading closely, because the conditions attached are usually substantial.

Technical view

Potential routes include product liability, negligence, contract, and sector-specific regimes, with proposals in several jurisdictions to adapt product liability rules to software and AI. Provider copyright indemnities typically require use of unmodified services, retention of safety features, and prompt notification. Professional indemnity insurance may exclude AI-assisted work, which is worth checking. Contractual allocation between vendor, deployer and user is currently doing most of the work.


Part of AI Terminology Index, section: Governance, Law and Regulation.

How it connects

Liability and Indemnity links to 4 other terms. The faint lines are links between those terms. See it in the full graph.

Procurement and Vendor AssessmentProcurement and Ven…Third-party RiskThird-party RiskCopyright and Training DataCopyright and Train…Sector RegulationSector RegulationLiability and Indemnity