AI and the climate crisis pose existential risks. The law offers a way to reduce them

Liability lawsuits have held tobacco, oil and pharma companies to account in the past. AI investors won’t ignore this threat

AI and the climate crisis pose existential risks. The law offers a way to reduce them

TL;DR

  • The climate crisis and AI pose escalating risks of extraordinary harm.
  • Donald Trump and his Republican allies refuse to address these risks, potentially worsening them.
  • Liability law can be used to reduce these risks by holding companies accountable for damages.
  • The Supreme Court is considering a case, Suncor v Boulder, involving climate change-related lawsuits against oil companies.
  • Several Supreme Court justices expressed skepticism about oil companies' arguments against such lawsuits, drawing parallels to tobacco and opioid settlements.
  • AI companies and tech giants could face massive liability for harms caused by AI agents, similar to past corporate settlements.
  • The potential financial risk from liability will weigh on AI companies and investors, forcing them to prioritize public safety.
  • The AI industry is likely to seek federal laws to limit liability, such as caps and industry-funded trust funds.
  • Insurers and major investors are already demanding better control and limitation of AI risks, evidenced by numerous cyber-liability and AI-related product liability cases.
  • Liability law is presented as an important, though not perfect, starting point for incentivizing companies to improve safety.