The Financial Markets Law Committee (FMLC)—an independent body established by the Bank of England to identify issues of legal uncertainty that may affect the operation of financial markets—has published a new report, “Private Law Issues in AI.” The report, which was prepared by an FMLC Working Group including Robert Maddox, Partner in Debevoise & Plimpton’s Data Strategy & Security Group, interrogates whether existing private-law frameworks are equipped to handle AI-driven decision-making, and whether new doctrines or legal actors are required. Key issues include:
- Whether an AI system should be regarded as a tool (with human attribution) or an agent (with its own legal personality).
- How traditional contract, tort and liability doctrines apply when AI is used in financial transactions or trading.
- The readiness of English common law to absorb AI-related disputes without wholesale legislative intervention.
- Areas of continuing uncertainty, especially around data and intellectual-property regimes, and the adequacy of private-law protections in consumer/retail settings.
You can view the full report here.
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