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AI and Liability

Simon Willison's Weblog

Jun 25, 2026

6/25/2026

AI Liability Exemptions Create Moral Hazard That Drives Substitution Of Professionals With Cheaper AI

AI and Liability · Simon Willison's Weblog

Law & Regulation · Jun 25, 2026

Schneier argues that broad AI liability exemptions create a moral hazard: firms will replace accountable professionals with cheaper AI to shift downside risk away from employers, distorting adoption toward legal arbitrage and exposing such business models to regulatory and litigation risk.


6/25/2026

Liability For AI Generated Content Lies With The Deploying Organization

AI and Liability · Simon Willison's Weblog

Law & Regulation · Jun 25, 2026

A legal framing is emerging that treats AI-generated output as the act of the deploying organization—highlighted by a recent German ruling and Bruce Schneier's commentary—meaning companies may bear liability for factual errors in AI summaries and should manage review, provenance, and risk as if they authored the content.