AI: A NEW LEGAL PERSON OR JUST A PRODUCT By - Sinjini Sana & Nirban Chakraborty
AI: A NEW LEGAL PERSON OR JUST A PRODUCT
Authored By - Sinjini
Sana & Nirban Chakraborty
B.A L.L. B (Hons.)
KIIT
School Of Law, Bhubaneswar
ABSTRACT
The new technological era
has been dubbed the "new industrial age," "data age," or
"information age." This is due to the fact that we now live in a
world where data is gathered and analyzed on an unprecedented scale. This data
is powering everything from our cellphones to self-driving automobiles.
However, this new data-driven world brings with it a new set of difficulties.
One of the most difficult issues is the issue of liability. Previously, if a
product or service failed, it was quite simple to pinpoint who was to blame.
The maker or programmer may be held responsible for the damages. But, when AI
powers a product or service, who is to blame if the AI makes a mistake: the
programmer, the firm that owns the AI, or the AI itself? This is a difficult
question with no simple answer. There are other elements to consider, including
the AI's level of autonomy, the responsibility of the programmer, and the
potential for harm. A new legal framework for AI liability is one possible
approach. This paradigm would have to account for AI's distinct traits, such as
its capacity to learn and adapt. The topic of AI liability is complicated, but
it is critical to address. In a bid to determine the ethical liability of the
AI or the programmer or the company which manufactured the AI it is important
to determine the legal personhood of an AI like some countries have given
citizenship to AI powered robots it is to debated upon that whether AI also
deserve a legal personhood and if so will it also have access to certain rights
like other legal persons.
KEYWORDS: Artificial Intelligence
(AI), ethical liability, legal personhood, AI powered robots.
INTRODUCTION
Artificial
Intelligence is composed of two words Artificial and Intelligence,
where Artificial defines "man-made," and intelligence defines "thinking
power", hence AI means "a man-made thinking power." So, we can define AI as:
"It is a branch of computer science by which we can create intelligent
machines which can behave like a human, think like humans, and able to make
decisions.[1]
Arificial Intelligence is a computer programmed robot or a sotftware which
think intelligently like a human mind. It studies the human brain and analyses
the cognitive process associated with it. It helps in developing software and
systems which helps us in various ways. AI is currently one of the most used
and trending topic in technlogy. It made its own way and entered into the world
of technology and is now been used for a good reason. There have been too many
innovations made in the last few years which led people to believe that science
fiction can also be turned into reality if it can be properly used and
implemented. AI can also be termed as a factor of production as it has the
capacity and potential to introduce new sources of growth and the working
pattern across several industries. For instance, AI could potentially contribute $15.7 trillion to the global economy by
2035. China and the United States are primed to benefit the most from the
coming AI boom, accounting for nearly 70% of the global impact[2].AI
is useful in many ways like it has been used in computer programs for decades
and now it is being used in some other services and technologies. For
example, the digital cameras have the ability to determine what objects are
present in an image using the artificial intelligence software. AI is
mainly designed for the purpose of solving practical problems. It draws its
interest on computer science, mathematics, psychology and linguistics. The tool
for providing and designing and building algorithms is provided by the computer
science whereas modeling and solving the problems comes under mathematics. The
concept of AI has been with us since the 19th century, when Alan Turing first proposed an
‘imitation game’ in order to assess machine intelligence. It became a success
due to the increased availability of computer power and data which are used to
train the AI systems. Doing research in this field is a means to deal with
producing machines to automate tasks which requires intelligent behavior. For
example, the ability in answering consumer questions; processing of natural
language and its perception; recognition of speech; to control, plan and to
schedule, and the ability to move objects and manipulate the same[3]. This paper
talks about the Artificial Intelligence and its various nodes. In this paper,
we will also discuss whether AI is a product or a person, the legal personhood
and various other trending topics related to AI. When discussing about AI,
there are two broad categories namely weak AI and strong AI, which will be
further discussed in detail in this paper. This paper will also talk about the
working process of the AI, the numerous ways of implementing the AI, and its
relation with other trending technologies. AI can make difference in our lives
and make signficant changes in our future by simply being a part of
technologies being used. The paper will also highlight on the future of the AI
by prioritizing AI to ensure that its benefit is maximized while minimizing
potential risks and challenges.
LITERATURE REVIEW
In
Gergit Wagner, Roman Lukyanenko and Guy Pare’s , “Artificial Intelligence and
conduct of Literature Reviews, Volume 37 Issue 2, Journal of Information
Technology (2021)” , argues that AI has begun to
transform the traditional research practices in many areas. To
familiarize researchers with some of the recent trends in this area, we outline
how AI can expedite individual steps of the literature review process.
Considering that the use of AI in this context is in an early stage of
development, we propose a comprehensive research agenda for AI-based literature
reviews (AILRs) in our field. With this agenda, we would like to encourage
design science research and a broader constructive discourse on shaping the
future of AILRs in research. In Ananya Bhattacharya’s, “Birds to holy
rivers: A list of everything India” (2022) considers “legal persons”
she states that There are two types of persons, according to the country’s law:
Natural, meaning a human individual capable of assuming obligations and holding
rights. The second group refers to “legal persons,” which refers to entities
endowed with juridical personality, decided upon by the courts.In Iglesias
Portela Maria, Shamuilia Sheron and Anderberg Amanda’s , “ Intellectual
Property and Artificial Intelligence- A Literature Review, Journal of European
Commission and JRC Publications Repository (2019)”, argues that AI has
been developed with a lot of creativity and this paper discusses the possible
outcomes which can be found out in the development and adoption of this new
technology in the intellectual property framework and also the concerns which
comes with the use of intellectual property which must be protected in order to
maintain transparency and explainability of the interest of right holders. Jagreet
Kaur’s “Ethics of Artificial Intelligence and its Applications (2023)”
states that Technology must have certain principles to build a better future
for humanity. It defends and promotes human rights and values. In Agnes
Juhasz’s “ The Applicability of Artificial Intelligence in Contractual
Relationships (2020)”, argues that the impact digitization and AI have
on law of obligations specially on law of contracts and the challenges that the
legislator faces in the near future. Various legal institutions examines and
analyes by various research studies the appearance and impact of AI and
digitalization on different types of legal work and on different legal areas. Ryan E.
Long’s “ARTIFICIAL INTELLIGENCE LIABILITY: THE RULES
ARE CHANGING”(2023)stated that AI liability road rules in the
U.S. and E.U. are developing. One thing is clear: under what circumstances a
company will be liable for its AI depends on whether a defect was present upon
the AI’s release and whether, in the E.U. at least, the application is
“high-risk.” In an article published in the Economic Times under the title “AI
and Privacy: The privacy concerns surrounding AI”,(2022) its potential
impact on personal data stated that AI systems often rely on extensive data to
train their algorithms and improve performance. This data may include
personal information such as names, addresses, financial information, and
sensitive information such as medical records and social security
numbers. The collection and processing of this data may raise concerns
about how it is used and who has access to it.
ARTIFICIAL INTELLIGENCE (AI)
Technology is abruptly
and tremendously growing in today’s world and we are getting to know about
various other new technologies day by day. One of the trending and booming
technologies of computer science is Artificial Intelligence. It can literally
create a new world working on intelligent machines and functioning
simultaneously. AI has emerged and can be seen in our daily to daily lives such
as driving cars, playing chess, proving theorems, playing music and many more.
According to various sources, in 1956, John McCarthy coined the term
“Artificial Intelligence” and held the first AI conference and in 1969, the
first general purpose mobile robot named Shakey was built. In 1997, the IBM
created the Supercomputer “Deep Blue” which defeated the world champion chess
player in a match. In 2002, the first commercially successful robotic vaccum
cleaner was created. From 2005-2019, the robotic process automation (RPA), a
dancing robot and other innovations came into existence for the first time. In
2020, Baidu released the LinearFold AI algorithm to medical and scientific
teams developing a vaccine during Covid 19 pandemic. Artificial Intelligence is
broadly divided into Weak AI and Strong AI. Weak AI are concerned with only
some specific tasks and do not perform anything beyond those tasks. They excel
at their given functions but lack general intelligence. Example of weak AI
includes Siri, Alexa or image recognition systems. On the other hand, Strong AI
is a system which is seen as human level intelligence which is used for varied
range of tasks. It can understand, give a proper reasoning, have the power to
learn and also apply knowledge to solve complex problems[4].
AI can also be broken down into two
major fields namely, Machine Learning (ML) and Neural Networks (NN). Both the
subfields has its own unique way of solving problems.
Ø Machine Learning
The computers are made to
learn from the data in order to experience and improve the performance they do
on some tasks and decision making process. It uses the statistics and
probability theory for this purpose. These algorithms are designed to establish
linear and nonlinear relationships in a given set of data.
Ø Deep Learning
It is a subset of machine
learning which uses multi-layered neural networks to deliver accuracy in object
detention, speech recognition and translation of the language. The technology behind
the driverless cars are based on the process of deep learning.
Ø Neural Networks
The biological neurons in
the human brain are composed of layers of connected nodes called ‘neurons’
which contain mathematical functions to process incoming data and to predict an
output value. It consist of three layers- an input layer, hidden layers, and an
output layer.
For AI to work smoothly,
there are increasing requirements for processing power. There are various
concerns related to AI like data availability, computational power and privacy.
Another important concern in AI is how the automated systems will be used[5].
CONCEPT OF LEGAL PERSONHOOD
Legal personhood is the
status of an entity that is recognized by the law as having the capacity to
hold rights and duties. In India, legal personhood is typically granted to
human beings, but it can also be granted to other entities, such as
corporations, trusts, and non-governmental organizations. The concept of legal
personhood is not explicitly defined in Indian law, but it is generally
understood to mean that the entity in question can own property, enter into
contracts, sue and be sued, and hold legal status, such as being a citizen or a
resident. In recent years, there has been some debate in India about whether
legal personhood should also be granted to non-human entities, such as rivers,
glaciers, and animals. In 2017, the Uttarakhand High Court granted legal
personhood to the Ganga River, and in 2022, the Madras High Court granted legal
personhood to the Cauvery River[6].
These decisions have been controversial, but they have also opened up the
possibility of giving legal personhood to other non-human entities in the
future. The concept of legal personhood is important because it determines who
can hold rights and duties under the law. This can have a significant impact on
the way that entities are treated by the legal system. For example, if a
corporation is granted legal personhood, it will be able to own property, enter
into contracts, and sue and be sued in its name. This means that it will be
treated as a separate legal entity from its shareholders or directors. The
concept of legal personhood is also important because it can protect the
interests of entities that are not traditionally considered to be "persons"
under the law. For example, granting legal personhood to rivers and glaciers
could help to protect them from environmental damage. Several factors are
considered when deciding whether to grant legal personhood to an entity in
India[7].
The nature of the entity, the purpose of giving legal personhood, the potential
impact of granting legal personhood, and the precedent set by granting legal
personhood are all taken into account. Ultimately, the decision of whether or
not to grant legal personhood is a discretionary one that is made by the court
on a case-by-case basis[8].
There is no set formula for determining whether or not an entity will be
granted legal personhood. As of yet, no artificial entities have been granted
legal personhood in India. However, there is some debate about whether or not
this should happen in the future. Some people argue that giving legal
personhood to artificial entities would be a way of protecting their rights and
ensuring that they are treated with respect. Others argue that it would be a
slippery slope that could lead to artificial entities being granted more and
more rights, eventually becoming equal to or even superior to human beings.
Ultimately, the decision of whether or not to grant legal personhood to
artificial entities is a complex one that will likely need to be made on a
case-by-case basis.
INTELLECTUAL PROPERTY RIGHT OF AI
Intellectual Property
plays an important role in deveoping innovation by providing support and
incentives to creators worldwide. Our society needs to be progressed and the
underlying factor is that the society needs to be largely determined by the
ability to generate new ideas and introduce unique inventions to the market. As
the demand for AI is increasing day by day, specially Generative AI, a new wave
of opportunities and challenges is seen to be emerging. Generative AI has been
in demand since it brought a rappid change with text generators like Chat GPT
which is nowadays used by almost everyone from student to researcher. It works
faster than the humans and help in writing essays, poems, and also legal exams[9].
According to the U.S Copyright Office, any work/works created by a non-human,
like robots and machines does not have any copyright protection and therefore
the product made out of generative AI model cannot be copyrighted. The AI
systems including the image generators, music generators and chatbots are not
considered the author of the material they produce as it is non human and done
by the machines. The word ‘author’ cannot be extended to non humans, including
machines. Even if a human simply types something and the machine generates a
written musical or visual work in a response, then also the elements of
authorship is seen to be executed by AI, which is a non-human and therefore,
there is no copyright protection[10].
Using AI for creating works can provide for implications in the copyright law.
There was no ownership of copyright in computer generated works as it was just
like a tool which supported the creative process like pen and paper. Copyright
can only be given to the original creative works which is done by the human
author. Jurisdictions like in Spain and Germany, it states that only the works
created by human can be protected by copyright. Since the demand for AI is at
its peak, the computer program has ceased to be a tool and it can actually make
many of the decisions which require complex thinking process and analysis of
matters without the intervention of humans[11].
ETHICAL BURDEN OF AI
AI's ethical
responsibility is a complicated and growing topic. As AI advances in
sophistication, it is critical to evaluate the potential ethical consequences
of its application. Some of the most important ethical considerations
concerning AI systems should be addressed in the decision-making process. This
implies that people should be able to comprehend how the system operates and
why it makes certain decisions. This is significant for several reasons. For
starters, it allows individuals to trust the system and have faith in its
judgments. Second, it enables individuals to recognize and fix any biases that
may exist in the system. Third, it enables individuals to hold those in charge
of the system accountable for any harm caused by it.AI systems must be
equitable and non-discriminatory[12].
This implies that they should not be prejudiced against specific categories of
individuals. This is significant because it assures that everyone has an equal
opportunity to gain from artificial intelligence. It also helps to keep
artificial intelligence from being exploited to perpetuate current injustices.
Individuals' privacy should be respected by AI systems. This implies that they
should not acquire or use personal data without the individual's consent[13].
This is significant since it prevents the abuse of people's personal
information. It also contributes to people's confidence in employing AI
technologies. AI systems should be held responsible for their acts.As AI
advances, it is critical to continue grappling with these concerns and
developing ethical frameworks for the responsible use of AI. In addition to
these broad ethical problems, a number of specific ethical difficulties have
emerged in the context of AI. AI systems can become biased if they are trained
on biased data. As a result, AI systems may make judgments that are unjust or
discriminating. For example, an AI system educated on data that is biased
against women may propose employment to males rather than women. Personal data
is frequently collected and used by AI systems.This information may be used to
follow people's movements, target them with advertisements, and even control
their gadgets. This raises fundamental issues about privacy[14].
AI systems can be hacked or fail. This might pose major safety issues, such as
driverless vehicles collapsing or medical gadgets misdiagnosing patients. It is
unknown what role humans will have in the future of AI as AI systems become
more advanced. Some individuals believe that artificial intelligence will one
day exceed human intellect. This begs the question of whether humans will
retain control over AI.
CONTRACTUAL RELATIONSHIP WITH AI
A contractual
relationship with AI refers to the legal agreement between the parties
involving the use, development, or deployment of AI technology.
Ø Parties Involved: The contract may involve
one or more entities, such as individuals, organizations who are entering into
agreement regarding the AI technology. This includes developers, licensors,
etc.
Ø Purpose and Scope: It should define the
purpose and scope of the AI technology’s use. It may cover aspects like data
collection, processing, decision making and many more.
Ø Intellectual Property Rights: After developing the AI
technology, it should address the ownership and licensing of the intellectual
property rights.
Ø Data Rights and Privacy: Clear guidelines should
be established with respect to data ownership, privacy rights, and consent and
privacy laws.
Ø Termination and Modification: The conditions must be
written down as to under what circumstances an agreement can be terminated by
either party or its associated penalties.
The concept of ‘contract
management’ is important when we talk about artificial intelligence. It focuses
o building algorithms models to identify relationships and patterns in data. An
AI is used to identify relationships between contract data as it can very well
detect errors and other mistakes and can therefore create patterns to enhance
firm’s contracts[15].
The use of Artificial
Intelligence in contract management has gone up to the next level. With the
help of AI, CLM technology is used to improve the contract documents and its
management in any industry. AI powered contracting software like Sirion, uses a
neural network based system to identify, to learn from and offer prescriptive
insights based on retrospective contracting data to help create smarter
agreements faster than ever. This software combines machine learning (ML),
natural language processing (NLP) and other AI technologies. Companies that use
artificial intelligence contracting software can increase risk discovery in
third-party documents and legacy portfolios. The CLM's underlying AI engine, as
a self-learning system, can compute and generate risk scores against contract drafts
by comparing them at the clause level to the enterprise contracting playbook.
Contract managers can then make changes depending on the AI-suggested changes[16].
LIABILITY OF AI
The
legal responsibility of AI is a complicated and growing topic with no one size
fits all solution. In many circumstances, the AI's creator is held liable for
any harm produced by the AI. This is because the developer is in charge of
creating and implementing the AI, as well as controlling its behaviors. The
user of the AI may also be held liable for any harm produced by it, as they are
accountable for how the AI is utilized and should be aware of the dangers
involved[17].
Furthermore, the AI's owner may carry some accountability if they manage the
AI's access to resources and data and are aware of the possible hazards.
Several laws may apply to establish AI's legal liability. If the AI is offered
as a product, product liability laws may apply, and negligence laws may apply
if the AI is used negligently. If the AI obtains or utilizes personal data in a
way that violates privacy legislation, privacy laws may apply[18].
These are only a few instances, and AI's legal duty may vary according on the
facts of each case. When it comes to defense-related AI systems, multiple
parties may have legal obligation. Finally, the courts will determine legal
culpability on a case-by-case basis, taking into account numerous variables
such as the AI's level of autonomy, the involvement of humans in its
development and usage, known hazards, and whether the AI was employed
carelessly or purposefully. When utilizing AI in defense, ethical issues should
be considered in addition to legal culpability. To ensure the appropriate and
ethical use of AI in defense, a comprehensive and complete analysis of these
ethical considerations is required. The topic of whether AI can be held
accountable for its errors is complicated[19].
Consider factors such as the AI's level of autonomy, human participation in its
creation and usage, and potential hazards. In certain circumstances, AI may be
held accountable for its errors in the same way that humans are. For example,
if an AI is utilized irresponsibly and causes severe harm, the AI's developers
or users may be held accountable. However, establishing negligence may be difficult
in cases when the AI's choices match with its programming in a complicated and
unpredictable environment. There have been instances where AI has been held
accountable for its errors. In 2020, an AI programme misdiagnosed a suspect,
resulting in a false arrest, for which the detained person filed a lawsuit
against the police agency. These examples show that AI can be held accountable
for its errors, although legal responsibility for AI is still an emerging field
of law[20].
There is no clear consensus in the legal system on how AI should be treated,
and courts are still formulating the standards to evaluate responsibility in
AI-related matters. As AI advances, additional instances are projected to
emerge, further changing the legal environment around AI accountability.
DATA PROTECTION AND PRIVACY
CHALLENGES OF AI
The usage of artificial intelligence
(AI) is quickly increasing, as are the difficulties to data protection and
privacy. AI systems gather and analyze massive quantities of personal data,
which may be used to follow people, anticipate their behavior, and even
influence their decisions. This presents several privacy problems, including
the possibility of identity theft, discrimination, and the dissemination of
disinformation. The Information Technology Act (IT Act) of India is the primary
law that oversees data protection and privacy. The IT Act includes rules
requiring businesses to get individuals' consent before collecting personal
data and to use that data exclusively for the reasons for which it was
gathered.The IT Act, on the other hand, is not especially designed to solve the
issues brought by AI, and there are fears that it will not be adequate to
safeguard persons' privacy in the age of AI. Other nations have a variety of
legislative systems in place to address data protection and privacy. The European
Union's General Data Protection Regulation (GDPR), for example, is one of the
most comprehensive pieces of data protection law in the world. The GDPR applies
to all firms, regardless of location, that process personal data of persons in
the European Union. As AI technology advances, the problems surrounding data
protection and privacy are going to get increasingly difficult.It is critical
that governments and corporations collaborate to establish new rules and
regulations to preserve individuals' privacy in the age of AI[21]. The huge volume of
data that AI systems collect and analyse poses some special issues to data
protection and privacy. To train and function, AI systems require massive
volumes of data. Personal information such as names, addresses, and email
addresses may be included in this data. The gathering and use of this data
poses privacy concerns, including the possibility of identity theft and
discrimination. The AI system's complexity. AI systems are frequently
sophisticated and difficult to comprehend.Individuals' ability to understand
how their data is being used and exercise their privacy rights is hampered as a
result. The possibility for AI systems to be utilised maliciously. Deep fakes
are films or audio recordings that have been modified to make it appear or
sound like someone is talking or doing something they never said or did. Deep
fakes can be used to disseminate disinformation or harm someone's reputation[22].
FUTURE PERSPECTIVES
Keeping in mind the
various aspects of Artificial Intelligence, it can be noted that the future of
AI looks promising. The following are some of the potential future perspectives
of AI:
- The development of AI depends on
machine learning, specifically deep learning algorithms. Future
innovations in this aspect could lead to more capable AI systems which
would in turn help them to solve complex real world problems and make
better decisions.
- AI’s development in the
healthcare sector is promising as it would improve diagnostics, medicines
and disease prediction offering efficient and accurate healthcare
solutions.
- AI has become an important
aspect of society as there is an increased emphasis on ethical
considerations. Issues such as privacy, security and use of AI technology
must be kept in mind.
- AI and Robotics can lead to
development of sophisticated autonomous systems including robots for
manufacturing, delivery, exploration and also assistance in various
domains.
- AI and Creativity are already
becoming prevalent day by day like AI generated music, art and literature
and the future of it looks very promising.
- AI can also assist in space
missions by analyzing data, controlling spacecraft and also aiding in
scientific discoveries.
- AI in Transportation will be a
great help in the near future as there will be self-driven cars and also
AI based traffic management systems which will reduce accidents, improve
traffic flow and enhance in overall efficiency.
- AI plays an important and
crucial role in climate change by climate modeling and resource management
helping us address climate change challenges more effectively.
In a nutshell, it can be
said that AI’s growth is likely to be characterized by rapid developments,
increased integration into the various sectors and also a growing focus on
ethical considerations. There will be advantages as well as challenges which
will require careful navigation to make sure that AI is getting beneficial
deployment.
CONCLUSION
The subject of whether
artificial intelligence should be regarded a legal person or merely a product
is complicated, and there is no simple answer. Many aspects must be considered,
including AI systems' intelligence and autonomy, the possible advantages and
hazards of granting them legal personhood, and the ramifications for current
laws and regulations. On the one hand, there are compelling reasons for giving
AI legal personality. AI systems capable of autonomous cognition and action,
for example, may be held accountable for their own activities, much like
humans. This would assist to guarantee that AI systems be utilised responsibly
and safely, and that those who build and use them are not held liable for any
harm they cause. Furthermore, allowing AI legal personality may open up new
avenues for AI-related innovation. AI systems, for example, may be granted
property rights, allowing them to own and control their own data and
intellectual property. However, there are problems connected with granting AI
legal personality. For example, AI systems may be treated as if they were human
persons, with all of the same rights and advantages. This might have a lot of
undesirable effects, such as AI systems being able to own property, vote in
elections, and even occupy public office. Furthermore, providing AI legal
personality may make it more difficult to hold people accountable for AI system
behaviour. Finally, deciding whether or not to grant AI legal personality is a
complicated choice that must be taken on a case-by-case basis. There is no
one-size-fits-all solution, and the optimum strategy will most likely differ
based on the unique capabilities of the AI system under consideration.
Meanwhile, it is critical to continue to explore the ethical and legal
consequences of AI development. As AI systems become more complex, it is
critical that we comprehend the possible advantages and hazards of endowing
them with legal personhood. Only then will we be able to make educated
judgements on how to govern and utilize this powerful new technology. In
addition to the foregoing, here are some further ideas on the subject. The
issue of AI legal personhood is expected to become more significant in the
coming years as AI systems grow more complex. Before making any judgements
regarding how to manage this technology, it is critical to understand the
possible advantages and hazards of granting AI legal personhood.