Law by Algorithm

Abstract

This review article offers a critical analysis of Horst Eidenmüller and Gerhard Wagner’s Law by Algorithm by focusing on four major sets of issues that are covered in this important work: (i) separate legal personality for artificial intelligence (AI) systems; (ii) the exploitation and protection of consumers; (iii) liability; and (iv) online dispute resolution. On separate legal personality, it is shown that neither unbundled products nor difficulties in proving that the systems resulted in damage or losses necessarily justify giving legal personality to AI systems. On consumer protection, it is argued that exploitation of consumers can be regulated by consumer protection legislation provided that reforms are made to remove enforcement hurdles. On liability, the issues arising from product liability legislation and problems associated with proving causation are critically examined. On online dispute resolution, smart contracts and self-driving contracts are distinguished, and a distinction is drawn between AI-assisted and AI-substitutionary adjudication.