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    Home ยป The Legal Challenges of AI Agents
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    The Legal Challenges of AI Agents

    techgeekwireBy techgeekwireMay 29, 2025No Comments3 Mins Read
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    The Rise of AI Agents

    Jay Prakash Thakur, a veteran software engineer, has spent his nights and weekends developing AI agents that can perform complex tasks with minimal human oversight. His prototypes have shown promising results, but they’ve also raised important legal questions about responsibility when these autonomous systems make mistakes.

    What are AI Agents?

    AI agents are programs that can act independently to automate tasks such as customer service, invoice processing, and even software development. Unlike chatbots that require human input, agents can tackle complex functions on their own. Tech giants like Microsoft and Google are investing heavily in this technology, with Gartner predicting that agentic AI will handle 80% of common customer service queries by 2029.

    The Legal Gray Area

    One of the biggest concerns with AI agents is determining who is responsible when they cause financial damage. Thakur’s experiments have shown that even with careful design, errors can occur. In one test, an agent incorrectly interpreted a tool’s usage policy, potentially leading to a system breakdown. In another, an ordering system misinterpreted customer requests, potentially resulting in incorrect orders.

    Benjamin Softness, an attorney at King & Spalding, notes that companies will likely be held responsible for agent errors, even if they’re not directly at fault. “I don’t think anybody is hoping to get through to the consumer sitting in their mom’s basement on the computer,” he said, referring to the difficulty of pursuing legal action against individual users.

    Potential Solutions

    Some developers believe that a “judge” agent could help identify and remedy errors before they cause harm. However, others worry that companies are overengineering their systems with too many agents, creating unnecessary complexity. Mark Kashef, a freelancer on Fiverr, advises companies to focus on developing single agents that can make a significant impact rather than complex multi-agent systems.

    Legal Implications

    Legal experts suggest that existing laws will likely hold users responsible for agent actions, especially if they’ve been warned about the technology’s limitations. To mitigate this risk, some companies may require users to sign contracts that shift responsibility onto the technology providers. However, this may not be feasible for ordinary consumers.

    Rebecca Jacobs, associate general counsel at Anthropic, notes that there will be interesting questions about whether agents can bypass privacy policies and terms of service on behalf of users. Dazza Greenwood, an attorney researching AI risks, advises caution, saying, “Work your systems out so that you’re not inflicting harm on people to start with.”

    Conclusion

    While AI agents have the potential to revolutionize various industries, their development and deployment raise complex legal questions. As the technology continues to evolve, companies will need to carefully consider these issues to avoid potential liabilities.

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