Definition
The legal responsibility a company can bear for what its AI chatbot says or does — including deceptive pricing answers, privacy harms, or harm to vulnerable users. Regulators are now acting on it directly: New York sued a car marketplace over its chatbot's pricing answers, and eight US states sued a leading AI lab over alleged harms to children and parents.
Why it matters
Enforcers increasingly treat a vendor's AI output as the vendor's own conduct, so chatbot behaviour is becoming a product-safety and compliance issue rather than just a feature. Boards should expect AI-generated answers to be examined and litigated like any customer-facing claim.