Generative AI and liability of developers, providers and users

A TIM-financed project which aims to address modern challenges related to the liability of different subjects in regards to the use and development of AI systems.

The widespread use of Artificial Intelligence (AI) in various sectors has highlighted the need to address legal implications, particularly regarding liability. AI systems, especially generative AI technologies, are complex and involve detailed responsibilities that range from model training to data quality. Legal debates have intensified, exemplified by actions like the Italian Privacy Guarantor’s temporary restrictions on OpenAI’s data processing and the European Commission’s proposed AI Liability Directive, aiming to protect victims of AI-induced harm. In the U.S., the Federal Trade Commission is investigating OpenAI for potential consumer protection violations. These issues underscore the challenges of AI’s autonomous operation and the use of copyrighted material in AI development, raising concerns about legality and liability that could extend to users and operators of AI technologies. This scenario suggests an emerging need for updated legal frameworks to address these modern challenges.

1. To Examine the legal issues related to the use of Generative Artificial Intelligence, including misuse, malfunction, and violations of intellectual property.
2. To assess the European legislative proposals and legal activities in the United States or in other countries if deemed significant (e.g., China or UK) to determine the regulatory future of Generative Artificial Intelligence.

The research has produced a deliverable titled “Liability of Manufacturers, Suppliers, and Users in the Context of Generative Artificial Intelligence.” This document analyzes the main liability issues arising from the increasing use of this technology, with particular focus on cases most relevant to the use of generative AI by telecommunications companies. It also examines the latest legal developments, both statutory and case law, related to this issue, linking them to the long and incomplete journey over the years that has attempted to establish the liabilities of manufacturers, suppliers, and users of software in a world of increasingly dematerialized goods and services.