LAW
Liability Issues Associated with Automation , Robots and AI
Industries are using technology to offset rising labor costs . What are the legal risks ?
Compiled by John Joseph Parker Contributing Editor
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hamburger cooking robot costs about $ 60,000 ; many industrial service robots , such as robotic vacuums and robotic assembly arms , are leased . A commercial robotic vacuum will cost between $ 7,000 and $ 15,000 to purchase , but they are often leased at $ 4.00 to $ 6.00 per hour of operating time , less than the minimum wage . The robot ’ s manufacturer or distributor is responsible for all maintenance on the device .
According to a recent study from Ball State University , there is no stopping the robotic transformation of the food service industry , including quick service restaurants .
Most of the robots used in the hospitality industry are technologies initially developed for other industries , such as automobile and food manufacturing , which have been modified from their original functions to perform their tasks in a hospitality setting .
Examples include the work performed by robotic vacuums , information displays and robotic manufacturing assembly arms , which put together pizzas and cocktails .
Given the growing use of artificial intelligence , automation and robots in the hospitality and other industries , COMMERCE asked legal experts to discuss the liability issues associated with using this new technology .
Chiesa Shahinian & Giantomasi PC By Michelle A . Schaap , Esq ., Member of the Firm , Privacy & Data Security Group install tracking technologies into company delivery vehicles to track delivery status — and advertise these real-time capabilities online . However , this technology also records rates of speed . Rushed with a late delivery , your driver gets into an accident after running a red light and your business is sued . If the vehicle ’ s data is subpoenaed in litigation , there is now recorded evidence of reckless driving at the time of the accident . These are but two examples of potential liability and loss if technologies are not managed properly and personnel are not adequately trained . Be mindful of what you collect , how it is managed and secured , and do not retain data longer than needed .
Connell Foley LLP By Karen Painter Randall , Esq ., Chair of the Cybersecurity and Data Privacy Group
The use of robots and artificial intelligence ( AI ) in the workplace is growing , as is an employer ’ s potential legal exposure in the hiring and firing of employees due to AI-related elimination of jobs , displacement of workers or change in occupational categories . With AI , systems can perform tasks once within the exclusive province of humans . While there are benefits to using AI in hiring , including saving time , removing human bias and increasing new-hire diversity , AI can be problematic if the algorithm has a disparate impact forming the basis for an employment discrimination lawsuit against the company .
Employers also need to be certain that — to the extent AI is contributing to decision-making on downsizing — the methodologies , algorithms and outcomes are tested , documented and found to be acceptable to create a defensible position and minimize exposure . Further , in 2019 , the New Jersey Algorithmic Accountability Act was introduced , requiring covered businesses to conduct assessments to reduce the risks of using “ high-risk ” automated decision systems on New Jersey consumers . Robotics and AI will continue to change the workforce . Employers using this evolving technology will gain a competitive edge if they deploy best practices to minimize risk of system bias or discrimination by testing , auditing and understanding how the hiring / firing algorithm makes its decisions .
McCarter & English , LLP By Ronald M . Leibman , Esq ., Partner , Leader , Transportation , Logistics & Supply Chain Management Practice
Supply chain stakeholders continue to rush toward data-driven solutions like big data , autonomous vehicles , AI and robotics , with a focus on driving down cost and finding operational efficiencies . Often overlooked are the legal exposures that may result from massive and expedited adoption of these technologies . Some examples : ◾ An employer relies on algorithmic recruitment software to screen potential employees . Continued On Page 36
Automated and connected technologies come with risks and legal liability for businesses that don ’ t properly manage and secure these tools and the data they store . Consider these scenarios : You implement cloud-enabled wearable technologies for your construction workers . Their developer releases a patch resolving a software vulnerability allowing bad actors to capture , and potentially alter , the data collected — but , as a mid-sized business , you don ’ t have an IT department dedicated to deploying these updates . Your wearables are hacked , and sensitive employee health information is compromised . You now have a reportable data breach and morale problem with the impacted personnel . You
The use of robots and artificial intelligence ( AI ) in the workplace is growing .
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