Urgent legal reform needed ahead of the fourth industrial revolution

New labour and employment legislation is “urgently needed” before the impending AI revolution, including in the area of liability for autonomous cars, according to a report by the International Bar Association (IBA).

The present wave of automation, driven by artificial intelligence (AI) – the development of computer systems able to perform tasks normally requiring human intelligence – is creating a gap between current legislation and new laws necessary for an emerging workplace reality, states the 120-page report by the IBA Global Employment Institute (IBA GEI), entitled Artificial Intelligence and Robotics and Their Impact on the Workplace.

The report examines the issue of liability when driverless cars fail, finding that the absence of any legal framework “may become an insurmountable obstacle to the introduction of fully automated driving”.

In most cases the driver is liable, with liability extending along delictual or tortious lines to manufacturers for defects. Vehicle owners are also subject to special owner’s liability, particularly in European countries. But liability for incidents involving automated vehicles is currently unlegislated for.

The report’s authors examine whether rules applicable to other automated areas, such as aviation, can be applied, but reason that “it is not possible to apply the liability rules from other automated areas to automated driving”, and that international liability standards with clear rules are needed.

Gerlind Wisskirchen, IBA GEI vice chair for multinationals and coordinator of the report, said: “Certainly, technological revolution is not new, but in past times it has been gradual. What is new about the present revolution is the alacrity with which change is occurring, and the broadness of impact being brought about by AI and robotics.

“Jobs at all levels in society presently undertaken by humans are at risk of being reassigned to robots or AI, and the legislation once in place to protect the rights of human workers may be no longer fit for purpose, in some cases.”

She added: “The AI phenomenon is on an exponential curve, while legislation is doing its best on an incremental basis. New labour and employment legislation is urgently needed to keep pace with increased automation.”