Legal Accountability and Ethical Considerations for Outcomes Driven by Artificial Intelligence in Business Operations
Abstract
This paper critically examines the integration of Artificial Intelligence (AI) into business operations, focusing on the challenges of legal accountability and ethical considerations. It first traces the development of AI and its transformative impact on commerce, providing a basis for examining the key ethical and responsibility challenges. The paper presents research findings that highlight the complexity of assigning responsibility for AI-generated outcomes and discusses the different approaches in national and international legal frameworks for AI. It emphasizes the need for clear legal structures and ethical guidelines to govern the role of AI in business and society. The paper concludes by highlighting the importance of harmonized global frameworks to ensure the responsible integration of AI, addressing both theoretical and policy implications. The findings point to a significant shift in legal trends and societal impacts due to AI and emphasize the urgent need for ethical deployment to prevent the reinforcement of societal biases.
Downloads
Download data is not yet available.
References
Book
Daly, Angela, et al. “AI, Governance and Ethics: Global Perspectives.” Chapter. In Constitutional Challenges in the Algorithmic Society, edited by Hans-W. Micklitz et.al, 182–201. Cambridge: Cambridge University Press, 2021.
Joiner, Ida Arlene. “Emerging Library Technologies: It Is Not Just for Geeks. Cambridge: Chandos Publishing, 2018.
Journal Article
Arnanz, Alba Soriano. “Creating Non-Discriminatory Artificial Intelligence Systems: Balancing the Tensions between Code Granularity and the General Nature of Legal Rules,” IDP. Revista De Internet, Derecho Y Política 38 ( 2023): 1-12. https://doi.org/10.7238/idp.v0i38.403794
Berkey, Brian. “The Philosophical Core of Effective Altruism,” Journal of Social Philosophy 52, no. 1 (2021): 93-115. https://doi.org/10.1111/josp.12347
Casado, Eduardo Gamero. “Automated Decision-Making Systems in Spanish Administrative Law,” Ceridap 1 (2023): 24-40. https://doi.org/10.13130/2723-9195/2023-1-119
Cyman, Damian, Elizaveta Gromova, and Edvardas Juchnevicius. “Regulation of Artificial Intelligence in BRICS and the European Union,” BRICS Law Journal 8, no. 1 (2021): 86-115. https://doi.org/10.21684/2412-2343-2021-8-1-86-115
Choudhary, Kamal, et al. “Recent Advances and Applications of Deep Learning Methods in Materials Science.” Npj Computational Materials 8, no. 1 (2022): 1-26. https://doi.org/10.1038/s41524-022-00734-6.
Crompton, Laura. “The Decision-Point-Dilemma: Yet Another Problem of Responsibility in Human-AI Interaction.” Journal of Responsible Technology 7– 8 (2021): 1-8. https://doi.org/10.1016/j.jrt.2021.100013
Enholm, Ida Merete et al. “Artificial Intelligence and Business Value: A Literature Review.” Information Systems Frontiers 24, no. 5 (2022): 1709-1734. https://doi.org/10.1007/s10796-021-10186-w
Erdélyi, Olivia J. and Judy Goldsmith. “Regulating Artificial Intelligence: Proposal for a Global Solution.” Proceedings of the 2018 AAAI/ACM Conference on AI, Ethics, and Society (2018): 95–101. https://doi.org/10.1145/3278721.3278731
Eschenbach, Warren J. von. “Transparency and the Black Box Problem: Why We Do Not Trust AI.” Philosophy & Technology 34, no. 4 (2021): 1607–22. https://doi.org/10.1007/s13347-021-00477-0
Hassani, Bertrand K. “Societal Bias Reinforcement through Machine Learning: A Credit Scoring Perspective.” AI and Ethics 1, no. 3 (2021): 239-247. https://doi.org/10.1007/s43681-020-00026-z
Helm, J. Matthew et al. “Machine Learning and Artificial Intelligence: Definitions, Applications, and Future Directions.” Current Reviews in Musculoskeletal Medicine 13, no. 1 (2020): 69–76. https://doi.org/10.1007/s12178-020-09600-8
Henz, Patrick. “Ethical and Legal Responsibility for Artificial Intelligence.” Discover Artificial Intelligence 1 (2021): 1-5. https://doi.org/10.1007/s44163-021-00002-4
Goldberg, Samuel G., Garrett A. Johnson, and Scott K. Shriver. “Regulating Privacy Online: An Economic Evaluation of the GDPR.” Law & Economics Center at George Mason University Scalia Law School Research Paper Series no. 22-025 (2019): 1-60. http://dx.doi.org/10.2139/ssrn.3421731
Kiškis, Mindaugas. “Legal framework for the Coexistence of Humans and Conscious AI.” Frontiers in Artificial Intelligence 6 (2023): 1-9. https://doi.org/10.3389/frai.2023.1205465
Kopalle, Praveen K. et al. “Examining Artificial Intelligence (AI) Technologies in Marketing via a Global Lens: Current Trends and Future Research Opportunities.” International Journal of Research in Marketing 39, no.2 (2022): 522-540. https://doi.org/10.1016/j.ijresmar.2021.11.002
Kumari, Divya, and Subrahmanya Bhat. “Application of Artificial Intelligence Technology in Tesla- A Case Study.” International Journal of Applied Engineering and Management Letters 5, no. 2 (2021): 205–218. https://doi.org/10.47992/IJAEML.2581.7000.0113
Larsson, Stefan. “On the Governance of Artificial Intelligence through Ethics Guidelines.” Asian Journal of Law and Society 7, no. 3 (2020): 437-451. https://doi.org/10.1017/als.2020.19
LeCun, Yann, Yoshua Bengio, and Geoffrey Hinton. “Deep Learning.” Nature 521, no. 7553 (2015): 436–444. https://doi.org/10.1038/nature14539
Manheim, Karl and Lyric Kaplan. “Artificial Intelligence: Risks to Privacy and Democracy.” Yale Journal of Law and Technology 21 (2019): 106-188.
Mikalef, Patrick, and Manjul Gupta. “Artificial Intelligence Capability: Conceptualization, Measurement Calibration, and Empirical Study on Its Impact on Organizational Creativity and Firm Performance.” Information & Management 58, no. 3 (2021): 1-20. https://doi.org/10.1016/j.im.2021.103434
Rodrigues, Rowena. “Legal and Human Rights Issues of AI: Gaps, Challenges and Vulnerabilities,” Journal of Responsible Technology 4 (2020): 1-12. https://doi.org/10.1016/j.jrt.2020.100005
Scherer, Matthew U. “Regulating Artificial Intelligence Systems: Risks, Challenges, Competencies, and Strategies,” Harvard Journal of Law and Technology 29, no. 2 (2016): 354-400.
Tai, Michael Cheng-Tek. “The Impact of Artificial Intelligence on Human Society and Bioethics,” Tzu-Chi Medical Journal 32, no. 4 (2020): 339-343. https://doi.org/10.4103/tcmj.tcmj_71_20
Turing, Alan Mathison. “Computing Machinery and Intelligence,” Mind LIX, no. 236 (1950): 433–460. https://doi.org/10.1093/mind/LIX.236.433
Valenzuela-Fernández, Luis Alex et al. “Law and Artificial Intelligence: Possibilities and Regulations on the Road to the Consummation of the Digital Verdict.” Journal of Law and Sustainable Development 11, no. 6 (2023): 1-15. https://doi.org/10.55908/sdgs.v11i6.1202
Von Eschenbach, Warren J. "Transparency and the black box problem: Why we do not trust AI." Philosophy & Technology 34, no. 4 (2021): 1607-1622. https://doi.org/10.1007/s13347-021-00477-0
Yazdanpanah, Vahid et al. “Reasoning about Responsibility in Autonomous Systems: Challenges and Opportunities.” AI & Society 38, no. 4 (2023): 1453–1464. https://doi.org/10.1007/s00146-022-01607-8
Zsofia, Riczu. “Recommendations on the Ethical Aspects of Artificial Intelligence, with an Outlook on the World of Work.” Journal of Digital Technologies and Law 1, no. 2 (2023): 498–519. https://doi.org/10.21202/jdtl.2023.21
Thesis or Dissertation
Boniface, Christopher Ryan. "The Legal Impact of Artificial Intelligence on the New Zealand Health System," Dissertation, Doctor of Philosophy, the University of Canterbury School of Law, 2021.
Lenardon, João Paulo de Almeida. “The Regulation of Artificial Intelligence.” Master’s Thesis, LLM Law and Technology, Tilburg University, 2017.
Legal Documents
The European Union. General Data Protection Regulation.
Other Documents
IAPP Research and Insights. “Global AI Legislation Tracker.” https://iapp.org/media/pdf/resource_center/global_ai_legislation_tracker.pdf.
Website Content
Dilmegani, Cem. “7 AI Applications @ Facebook.” https://research.aimultiple.com/introducing-facebook-ai-no-magic-just-code/
Association for Computing Machinery. “Edward A (“ED”) Feigenbaum.” https://amturing.acm.org/award_winners/feigenbaum_4167235.cfm?searchterm=Edward+I
Bullard, Elsa and Tess Godhardt. “Autonomous Vehicle Product Liability Cases: The Road Ahead.” https://www.law360.com/articles/1529785/autonomous-vehicle-product-liability-cases-the-road-ahead
Carter, Tom. “OpenAI Is Exploring Making Its Own Chips as AI Companies Scramble to Overcome the Global Processor Shortage, Report Says.” https://finance.yahoo.com/news/openai-exploring-making-own-chips-102609356.html
Center for AI and Digital Policy. “Council of Europe AI Treaty.” https://www.caidp.org/resources/coe-ai-treaty/
Deloitte United States. “Managing the Black Box of Artificial Intelligence (AI).” https://www2.deloitte.com/us/en/pages/advisory/articles/black-box-artificial-intelligence.html
Gent, Edd. “Artificial Intelligence Is Evolving All by Itself.” https://www.science.org/content/article/artificial-intelligence-evolving-all-itself
J., Ashutosh. “Elon Musk: The Visionary Pioneer Who Transformed Industries.” https://medium.com/@fact_file/elon-musk-the-visionary-pioneer-who-transformed-industries-815e0b874bbb
Joshi, Manas. “Natural Language Processing: Beyond BERT and GPT.” https://pub.towardsai.net/natural-language-processing-beyond-bert-and-gpt-84f052850d66
Kang, Cecilia. “In Show of Force, Silicon Valley Titans Pledge ‘Getting This Right’ With A.I.” https://www.nytimes.com/2023/09/13/technology/silicon-valley-ai-washington-schumer.html
Meltzer, Joshua P. and Cameron F. Kerry. “Strengthening International Cooperation on Artificial Intelligence.” https://www.brookings.edu/articles/strengthening-international-cooperation-on-artificial-intelligence/
Securiti Research Team. “The Impact of the GDPR on Artificial Intelligence.” https://securiti.ai/impact-of-the-gdpr-on-artificial-intelligence/
Senate Democrats. “Majority Leader Schumer Delivers Remarks To Launch SAFE Innovation Framework For Artificial Intelligence At CSIS.” https://www.democrats.senate.gov/news/press-releases/majority-leader-schumer-delivers-remarks-to-launch-safe-innovation-framework-for-artificial-intelligence-at-csis
Standford University, “AI Index Report 2023 – Artificial Intelligence Index.” https://aiindex.stanford.edu/report/
The Pew Charitable Trusts. “How FDA Regulates Artificial Intelligence in Medical Products.” https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2021/08/how-fda-regulates-artificial-intelligence-in-medical-products
UN News. “193 Countries Adopt First-Ever Global Agreement on the Ethics of Artificial Intelligence.” https://news.un.org/en/story/2021/11/1106612
Daly, Angela, et al. “AI, Governance and Ethics: Global Perspectives.” Chapter. In Constitutional Challenges in the Algorithmic Society, edited by Hans-W. Micklitz et.al, 182–201. Cambridge: Cambridge University Press, 2021.
Joiner, Ida Arlene. “Emerging Library Technologies: It Is Not Just for Geeks. Cambridge: Chandos Publishing, 2018.
Journal Article
Arnanz, Alba Soriano. “Creating Non-Discriminatory Artificial Intelligence Systems: Balancing the Tensions between Code Granularity and the General Nature of Legal Rules,” IDP. Revista De Internet, Derecho Y Política 38 ( 2023): 1-12. https://doi.org/10.7238/idp.v0i38.403794
Berkey, Brian. “The Philosophical Core of Effective Altruism,” Journal of Social Philosophy 52, no. 1 (2021): 93-115. https://doi.org/10.1111/josp.12347
Casado, Eduardo Gamero. “Automated Decision-Making Systems in Spanish Administrative Law,” Ceridap 1 (2023): 24-40. https://doi.org/10.13130/2723-9195/2023-1-119
Cyman, Damian, Elizaveta Gromova, and Edvardas Juchnevicius. “Regulation of Artificial Intelligence in BRICS and the European Union,” BRICS Law Journal 8, no. 1 (2021): 86-115. https://doi.org/10.21684/2412-2343-2021-8-1-86-115
Choudhary, Kamal, et al. “Recent Advances and Applications of Deep Learning Methods in Materials Science.” Npj Computational Materials 8, no. 1 (2022): 1-26. https://doi.org/10.1038/s41524-022-00734-6.
Crompton, Laura. “The Decision-Point-Dilemma: Yet Another Problem of Responsibility in Human-AI Interaction.” Journal of Responsible Technology 7– 8 (2021): 1-8. https://doi.org/10.1016/j.jrt.2021.100013
Enholm, Ida Merete et al. “Artificial Intelligence and Business Value: A Literature Review.” Information Systems Frontiers 24, no. 5 (2022): 1709-1734. https://doi.org/10.1007/s10796-021-10186-w
Erdélyi, Olivia J. and Judy Goldsmith. “Regulating Artificial Intelligence: Proposal for a Global Solution.” Proceedings of the 2018 AAAI/ACM Conference on AI, Ethics, and Society (2018): 95–101. https://doi.org/10.1145/3278721.3278731
Eschenbach, Warren J. von. “Transparency and the Black Box Problem: Why We Do Not Trust AI.” Philosophy & Technology 34, no. 4 (2021): 1607–22. https://doi.org/10.1007/s13347-021-00477-0
Hassani, Bertrand K. “Societal Bias Reinforcement through Machine Learning: A Credit Scoring Perspective.” AI and Ethics 1, no. 3 (2021): 239-247. https://doi.org/10.1007/s43681-020-00026-z
Helm, J. Matthew et al. “Machine Learning and Artificial Intelligence: Definitions, Applications, and Future Directions.” Current Reviews in Musculoskeletal Medicine 13, no. 1 (2020): 69–76. https://doi.org/10.1007/s12178-020-09600-8
Henz, Patrick. “Ethical and Legal Responsibility for Artificial Intelligence.” Discover Artificial Intelligence 1 (2021): 1-5. https://doi.org/10.1007/s44163-021-00002-4
Goldberg, Samuel G., Garrett A. Johnson, and Scott K. Shriver. “Regulating Privacy Online: An Economic Evaluation of the GDPR.” Law & Economics Center at George Mason University Scalia Law School Research Paper Series no. 22-025 (2019): 1-60. http://dx.doi.org/10.2139/ssrn.3421731
Kiškis, Mindaugas. “Legal framework for the Coexistence of Humans and Conscious AI.” Frontiers in Artificial Intelligence 6 (2023): 1-9. https://doi.org/10.3389/frai.2023.1205465
Kopalle, Praveen K. et al. “Examining Artificial Intelligence (AI) Technologies in Marketing via a Global Lens: Current Trends and Future Research Opportunities.” International Journal of Research in Marketing 39, no.2 (2022): 522-540. https://doi.org/10.1016/j.ijresmar.2021.11.002
Kumari, Divya, and Subrahmanya Bhat. “Application of Artificial Intelligence Technology in Tesla- A Case Study.” International Journal of Applied Engineering and Management Letters 5, no. 2 (2021): 205–218. https://doi.org/10.47992/IJAEML.2581.7000.0113
Larsson, Stefan. “On the Governance of Artificial Intelligence through Ethics Guidelines.” Asian Journal of Law and Society 7, no. 3 (2020): 437-451. https://doi.org/10.1017/als.2020.19
LeCun, Yann, Yoshua Bengio, and Geoffrey Hinton. “Deep Learning.” Nature 521, no. 7553 (2015): 436–444. https://doi.org/10.1038/nature14539
Manheim, Karl and Lyric Kaplan. “Artificial Intelligence: Risks to Privacy and Democracy.” Yale Journal of Law and Technology 21 (2019): 106-188.
Mikalef, Patrick, and Manjul Gupta. “Artificial Intelligence Capability: Conceptualization, Measurement Calibration, and Empirical Study on Its Impact on Organizational Creativity and Firm Performance.” Information & Management 58, no. 3 (2021): 1-20. https://doi.org/10.1016/j.im.2021.103434
Rodrigues, Rowena. “Legal and Human Rights Issues of AI: Gaps, Challenges and Vulnerabilities,” Journal of Responsible Technology 4 (2020): 1-12. https://doi.org/10.1016/j.jrt.2020.100005
Scherer, Matthew U. “Regulating Artificial Intelligence Systems: Risks, Challenges, Competencies, and Strategies,” Harvard Journal of Law and Technology 29, no. 2 (2016): 354-400.
Tai, Michael Cheng-Tek. “The Impact of Artificial Intelligence on Human Society and Bioethics,” Tzu-Chi Medical Journal 32, no. 4 (2020): 339-343. https://doi.org/10.4103/tcmj.tcmj_71_20
Turing, Alan Mathison. “Computing Machinery and Intelligence,” Mind LIX, no. 236 (1950): 433–460. https://doi.org/10.1093/mind/LIX.236.433
Valenzuela-Fernández, Luis Alex et al. “Law and Artificial Intelligence: Possibilities and Regulations on the Road to the Consummation of the Digital Verdict.” Journal of Law and Sustainable Development 11, no. 6 (2023): 1-15. https://doi.org/10.55908/sdgs.v11i6.1202
Von Eschenbach, Warren J. "Transparency and the black box problem: Why we do not trust AI." Philosophy & Technology 34, no. 4 (2021): 1607-1622. https://doi.org/10.1007/s13347-021-00477-0
Yazdanpanah, Vahid et al. “Reasoning about Responsibility in Autonomous Systems: Challenges and Opportunities.” AI & Society 38, no. 4 (2023): 1453–1464. https://doi.org/10.1007/s00146-022-01607-8
Zsofia, Riczu. “Recommendations on the Ethical Aspects of Artificial Intelligence, with an Outlook on the World of Work.” Journal of Digital Technologies and Law 1, no. 2 (2023): 498–519. https://doi.org/10.21202/jdtl.2023.21
Thesis or Dissertation
Boniface, Christopher Ryan. "The Legal Impact of Artificial Intelligence on the New Zealand Health System," Dissertation, Doctor of Philosophy, the University of Canterbury School of Law, 2021.
Lenardon, João Paulo de Almeida. “The Regulation of Artificial Intelligence.” Master’s Thesis, LLM Law and Technology, Tilburg University, 2017.
Legal Documents
The European Union. General Data Protection Regulation.
Other Documents
IAPP Research and Insights. “Global AI Legislation Tracker.” https://iapp.org/media/pdf/resource_center/global_ai_legislation_tracker.pdf.
Website Content
Dilmegani, Cem. “7 AI Applications @ Facebook.” https://research.aimultiple.com/introducing-facebook-ai-no-magic-just-code/
Association for Computing Machinery. “Edward A (“ED”) Feigenbaum.” https://amturing.acm.org/award_winners/feigenbaum_4167235.cfm?searchterm=Edward+I
Bullard, Elsa and Tess Godhardt. “Autonomous Vehicle Product Liability Cases: The Road Ahead.” https://www.law360.com/articles/1529785/autonomous-vehicle-product-liability-cases-the-road-ahead
Carter, Tom. “OpenAI Is Exploring Making Its Own Chips as AI Companies Scramble to Overcome the Global Processor Shortage, Report Says.” https://finance.yahoo.com/news/openai-exploring-making-own-chips-102609356.html
Center for AI and Digital Policy. “Council of Europe AI Treaty.” https://www.caidp.org/resources/coe-ai-treaty/
Deloitte United States. “Managing the Black Box of Artificial Intelligence (AI).” https://www2.deloitte.com/us/en/pages/advisory/articles/black-box-artificial-intelligence.html
Gent, Edd. “Artificial Intelligence Is Evolving All by Itself.” https://www.science.org/content/article/artificial-intelligence-evolving-all-itself
J., Ashutosh. “Elon Musk: The Visionary Pioneer Who Transformed Industries.” https://medium.com/@fact_file/elon-musk-the-visionary-pioneer-who-transformed-industries-815e0b874bbb
Joshi, Manas. “Natural Language Processing: Beyond BERT and GPT.” https://pub.towardsai.net/natural-language-processing-beyond-bert-and-gpt-84f052850d66
Kang, Cecilia. “In Show of Force, Silicon Valley Titans Pledge ‘Getting This Right’ With A.I.” https://www.nytimes.com/2023/09/13/technology/silicon-valley-ai-washington-schumer.html
Meltzer, Joshua P. and Cameron F. Kerry. “Strengthening International Cooperation on Artificial Intelligence.” https://www.brookings.edu/articles/strengthening-international-cooperation-on-artificial-intelligence/
Securiti Research Team. “The Impact of the GDPR on Artificial Intelligence.” https://securiti.ai/impact-of-the-gdpr-on-artificial-intelligence/
Senate Democrats. “Majority Leader Schumer Delivers Remarks To Launch SAFE Innovation Framework For Artificial Intelligence At CSIS.” https://www.democrats.senate.gov/news/press-releases/majority-leader-schumer-delivers-remarks-to-launch-safe-innovation-framework-for-artificial-intelligence-at-csis
Standford University, “AI Index Report 2023 – Artificial Intelligence Index.” https://aiindex.stanford.edu/report/
The Pew Charitable Trusts. “How FDA Regulates Artificial Intelligence in Medical Products.” https://www.pewtrusts.org/en/research-and-analysis/issue-briefs/2021/08/how-fda-regulates-artificial-intelligence-in-medical-products
UN News. “193 Countries Adopt First-Ever Global Agreement on the Ethics of Artificial Intelligence.” https://news.un.org/en/story/2021/11/1106612
Published
2024-01-30
How to Cite
HOLZHAUSEN, Matthias.
Legal Accountability and Ethical Considerations for Outcomes Driven by Artificial Intelligence in Business Operations.
Udayana Journal of Law and Culture, [S.l.], v. 8, n. 1, p. 1-23, jan. 2024.
ISSN 2549-0680.
Available at: <https://ojs.unud.ac.id/index.php/ujlc/article/view/108567>. Date accessed: 27 apr. 2024.
doi: https://doi.org/10.24843/UJLC.2024.v08.i01.p01.
Issue
Section
Articles
