AI Liability and Negligence Cases: Who’s Responsible?

For the first time ever, Adjusters are dealing with AI liability and negligence cases, from automated driving systems to decision-making algorithms, AI introduces new complexities into claims investigations. But don’t worry—we’re here to break it all down in a way that’s as engaging as it is practical.

Let’s dive into how AI impacts liability, negligence, and your role as the detective of the insurance world.

What Is AI, and Why Should You Care?

If you’ve been keeping up with our articles you can skip this paragraph, but here’s a refresher: Artificial Intelligence is a broad term for computer systems designed to simulate human intelligence. Think of self-driving cars, facial recognition software, or even your favorite voice assistant—they all use AI to learn, adapt, and make decisions.

For adjusters, AI matters because it’s popping up in cases more frequently. Whether you’re handling a claim involving an autonomous vehicle or a workplace accident caused by a malfunctioning AI-powered machine, understanding the technology helps you get to the truth of what happened.

Step 1: Understanding Liability in the Age of AI

Traditionally, liability is straightforward: if someone’s negligence caused harm, they’re responsible. But with AI, things get murky.

Here’s why:

1. Shared Responsibility: In AI-related incidents, liability often involves multiple parties—manufacturers, software developers, operators, and even end users.
2. AI as a Decision-Maker: When AI makes decisions (like choosing to apply brakes in a self-driving car), determining fault becomes more complex.

For example, imagine an autonomous vehicle runs a red light and causes a collision. Is the driver liable because they failed to override the AI? Or is the manufacturer at fault for a programming error? These are the kinds of questions you’ll need to tackle.

Step 2: The Role of Negligence in AI Claims

Negligence occurs when someone fails to act with reasonable care, resulting in harm. In AI cases, like in all other negligence cases, you’ll need to ask: who failed to act reasonably?

1. Manufacturers and Developers: Did they create a safe product? Were there adequate safeguards in place?
2. Users/Operators: Did the person using the AI follow instructions and operate it responsibly?
3. Maintenance Teams: Was the AI system properly maintained and updated?

Negligence in Action: Sample Case

Let’s say a delivery robot malfunctions and knocks over a pedestrian. As an adjuster, you’d need to investigate:

• Was the robot properly programmed and maintained?
• Did the company using the robot provide clear guidelines for its operation?
• Was the pedestrian behaving in an unpredictable way?

Your job is to piece together these details and determine where negligence occurred.

Step 3: Investigating AI-Related Claims

Even in AI cases, traditional investigative steps still apply:
1. Gather witness statements.
2. Review physical evidence.
3. Analyze any available video footage or digital records.

Understanding the AI System

AI claims require an extra layer of investigation. Here’s what to look for:

• Software Logs: Many AI systems keep logs of their decisions and actions. These can provide valuable insights into what went wrong.
• Maintenance Records: Check if the system was regularly updated and serviced.
• Training Data: AI systems learn from data. If they were trained on flawed or biased data, this could point to negligence on the part of the developers.
• Collaborate with Experts: AI claims often require input from tech experts, such as engineers or data scientists, who can explain how the system was supposed to function and identify any failures.

Step 4: Navigating Legal and Ethical Considerations

Laws surrounding AI liability are still evolving, which can make your job as an adjuster more challenging. Keep these points in mind:

• Product Liability: In many cases, AI-related claims fall under product liability laws. This means the focus is on whether the AI system was defective.
• Comparative Negligence: Some jurisdictions may assign partial fault to multiple parties, including the AI operator and manufacturer.

AI can also raise ethical questions:

• Was the system designed to prioritize safety?
• Were users properly informed about its capabilities and limitations?

Step 5: Leveraging AI in Your Investigations

Here’s the irony: AI isn’t just a challenge in liability cases—it’s also a powerful tool for adjusters.

How AI Can Help:

• Fraud Detection: AI can analyze patterns in claims data to flag potential fraud.
• Document Review: AI-powered tools can quickly sift through piles of medical records, contracts, and other documents.
• Image Authentication: The process of verifying the integrity of an image or video to ensure that it has not been altered, manipulated, or misrepresented.

By embracing AI, you can work faster and smarter while staying ahead of the curve.

AI is transforming the claims landscape, introducing both challenges and opportunities for insurance adjusters. By understanding how AI impacts liability and negligence, you’ll be better equipped to handle complex cases and deliver fair, accurate outcomes. Remember, the key is to stay curious, collaborate with experts, and never stop learning. AI may be complex, but with the right approach, you can piece it together like a pro.

Ready to tackle AI-related claims? Stay ahead of the game by continuing your education, collaborating with industry experts, and leveraging the tools available to you. The future of insurance is here – talk to an expert.