Legal Issues on AI  Application



Honorable guests, ladies and gentlemen. Welcome to 2019 Global Lawyers Forum. On behalf  of Guangdong Lawyers Association, may I extend our warmest welcome to all of you for joining in this activity.



Artificial intelligence aims to create intelligent machines. AI has created many controversies  since it comes out, and  now  it  become  much more  essential. However, applying AI may face  some  legal risks. Today, I would like to introduce the legal risks that driverless car, social media and online sales industries may face while applying AI.




Driverless technology has been widely used in  commercial sectors, such as logistics and distribution, hazardous operations, shared travel and agricultural machinery. The rapid development of driverless tech in commercial  use  promotes  its civil use.



The practical application  of  driverless driving  brings two legal problems. The first problem is,  the absence of drivers  brings greater challenges to the current  Chinese  driver’s license  rules. Second,  when  traffic accidents happen, it’s hard to determine the responsible party of driverless driving through the  current  civil and  criminal system.



The conflict between driverless driving and the current criminal law comes from the following 3 parts. The  first is the  uncertainty of the behavioral subject. Secondly, it is  hard  to establish  the causality between  the  driver’s  or  the passenger  ‘s behavior  and the accident. Thirdly, the assumed legal  liabilities  differ  from that in traditional traffic-accident-crime, because driverless cars  has  neither  control behavior nor subjective fault. Relevant subjects’  bearing  criminal  liability  deviates from the spirit of current law system.



Currently,  some Chinese  domestic legislation  stipulates that,  test units  must purchase traffic accident liability insurance. If the test vehicle  causes any  accident during the test, it shall be handled  according to  the current road traffic safety law and  regulations. The test driver shall bear  some  relevant legal  liabilities. Some  legislation  in other countries  are  instructive. So, we make the following  advice: Firstly, set up a special regulatory authority  to  coordinate  various regulatory authorities’  work. Secondly,  fault liability  principle  shall  be applied. For test  units,  unduly heavy  responsibility  is bad for developing  driverless  car. Thirdly,  market forces should be introduced  on liability distribution. For example, accidents caused by hacking attacks and system failure  being included  insurance coverage  can reduce  corporate worries.




At present, almost everyone is inseparable from the social media. AI  application on social media is quite extensive.




AI on social media  includes three  main  functions: collecting  social media data for enterprises,  analyzing  social media content, and matching user needs accurately.

Legal issues faced by  AI  in social media applications are prominent.



Does AI  over-acquire users’  private information? Is it possible to  insure users’  right to know not  impaired? These  has become key issues  in  AI  application.



Nowadays, many AI  imitate people’s  behavior,  they  can even have  human-like  expressions  and communicate with people. Shall we  give AI robots  some  Personality  Rights,  or  even legal subject status? But that may  conflict with  current rules  on  employment,  insurance, and performance appraisal. We  need to properly handle it.



Chinese “Personal Information Protection Law” is being actively constructed. “Cybersecurity Law of PRC” and “Decision on Strengthening Network Information  Protection” will form a complete framework for personal data protection. Currently,  some foreign legislation, such as  EU General Data Protection  Regulations,  can be referred. We should strengthen the legal supervision on  data acquisition, and hand over the big  data  to the credit bureau for unified management. In terms of  the  liability on  personal privacy leakage,  presumption of fault shall be applied, so that the public  may  feel  more  relieved when  using  AI  products.




Today, AI  is making strides in various industries. In e-commerce, it  enhances  the entire  transaction  experience. Over 80% of merchants in online merchants have used  AI  tools.



AI products applied in online sales include chat robot, which  helps  buyers  find the right product, compare multiple products, and  provides  customer service. AI also applies in  intelligent logistics,  improving  logistics efficiency while  lowering  costs. The third  application  is personalized recommendation. According to the recent search of potential customers, the search engine recommends the corresponding products.



AI in online  sales  has brought us a lot of convenience,  as well as  hidden legal risks.



Currently, China has certain  regulations  on  products  liability and privacy  protection. In foreign countries, the EU’s  ePrivacy  Directive and VCITA in US show the importance of user data protection. Considering consumers’  weak position,  I advise to  enhance  consumer protection  by some ways, such as  agreeing on effective dispute resolution methods in contracts,  restricting  seller’s access to  buyer’s personal information.




These are my personal views on legal issues of  AI application  in driverless car, social media and online sales industries.



With the rapid development of legal science and technology, Guangdong Province also puts  the development of legal science and technology in a key position,  especially on  the exploration of legal science a nd technology in the administration of justice and public legal services. Shenzhen,  a city in Guangdong,  has a pivotal position on the study of legal science and technology  all over the world. Now  in Shenzhen,  We  have set up a national legal science  and technology laboratory. In  future,  Guangdong  will have a more brilliant performance in the application of legal science and technology.

Thank you for listening.