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Bitkom Bundesverband Informationswirtschaft, Telekommunikation und neue Medien e.V.

(Federal Association for Information Technology, Telecommunications and New Media)

Thomas Kriesel

Head of Taxes, Legal & Financial Matters

P +49 30 27576-146 t.kriesel@bitkom.org

Albrechtstraße 10 10117 Berlin Germany

President Achim Berg

CEO

Dr. Bernhard Rohleder

www.bitkom.org

Position Paper

Liability for Artificial Intelligence (AI)

September 2020 Page 1

At present policymakers in the European Union (EU) discuss the legal framework for Artificial Intelligence (AI). The regulatory framework for AI, especially the applicable liability rules, will have fundamental effects on the use and the development of this technology in the near future. Likewise it will strongly influence the competitiveness of the EU’s economy. Bitkom*s position on liability for Artificial Intelligence can be summed up in the following five points:

1. The current law within the EU sufficiently covers the risks which may arise from AI systems. Individual rights and interests of potential AI users are adequately protected by non-discrimination rules, product safety standards and liability legislation. New legislation which exclusively applies to artificial intelligence is not justified, neither with regard to product liability nor to market access control. However, when adapt- ing existing product liability and market access rules, care should be taken to ensure that specific aspects of AI applications are adequately covered. When adapting the existing product liability and market access rules, legislators should ensure that spe- cific aspects of AI systems are adequately covered.

2. The liability concepts presently in force are based on a technology-neutral approach.

Thus liability rules are aiming at compensating damages regardless of how the dam- age has been caused. This must be maintained with respect to the assessment of product safety and liability for artificial intelligence. Therefore, there should not be a specific liability linked to the technology of artificial intelligence.

3. There is no need for a specific strict liability with compulsory liability insurance for operators of high-risk AI systems, since the risks of such systems (e.g. autonomous motor vehicles, drones, autonomous cleaning machines) have already been covered adequately by existing regulations (by national traffic rules, air safety rules). A dy- namic definition of high-risk AI creates the substantial risk that operators and manu- facturers of AI systems will subsequently be faced with much stricter requirements regarding liability for use and production of these AI systems within a short period of time. Specific regulations for new high-risk AI systems should therefore only be in- troduced for specific areas and not before un-regulated high-risk AI-Systems are

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www.bitkom.org

Position Paper

Liability for Artificial Intelligence (AI)

Page 2|2

about to be launched on the market. Otherwise, due to the diversity of different AI sys- tems and their use in different areas, inappropriate regulation becomes very likely.

4. Presently and in the foreseeable future only "weak" AI systems or assistance systems are deployed. These AI systems either provide recommendations to prepare a final hu- man decision or follow learning and decision-making processes in a human-defined frame and within pre-defined limits. Therefore their application is not connected with an increased risk. On the contrary, by avoiding human errors (e.g. delayed reaction, over- looking essential data/information, subjectivity), AI systems can reduce human errors and thus the risk of damages. To promote and make full use of these opportunities, leg- islators should not burden operators and manufacturers of AI systems with additional liability risks that exceed the liability risks of other technologies. In particular, regula- tions of AI systems aiming at mitigating the risks of complexity, autonomy or connectiv- ity of a system would lead to excessive regulation, because these qualities are not spe- cific characteristics of all AI Systems.

5. Any software, including AI applications, cannot be error-free. Accordingly, the manufac- turer or operator of an AI system must not be penalized if a status of freedom from er- ror has not been achieved (e.g. by extended product monitoring obligations).

Bitkom represents more than 2,700 companies of the digital economy, including 1,900 direct members.

Through IT- and communication services alone, our members generate a domestic annual turnover of 190 billion Euros, including 50 billion Euros in exports. The members of Bitkom employ more than 2 million people in Germany. Among these members are 1,000 small and medium-sized businesses, over 500 startups and almost all global players. They offer a wide range of software technologies, IT-services, and telecommu- nications or internet services, produce hardware and consumer electronics, operate in the digital media sector or are in other ways affiliated with the digital economy. 80 percent of the members’ headquarters are located in Germany with an additional 8 percent both in the EU and the USA, as well as 4 percent in other regions of the world. Bitkom promotes the digital transformation of the German economy, as well as of German society at large, enabling citizens to benefit from digitalisation. A strong European digital policy and a fully integrated digital single market are at the heart of Bitkom’s concerns, as well as establishing Germany as a key driver of digital change in Europe and globally.

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