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Big Tech’s AI Gatekeepers Could Draw Regulatory Scrutiny

Watch more: TechREG Talks With Anant Raut The legal architecture governing software rests on a useful assumption: However sophisticated the technology becomes, somewhere behind it sits a person or company responsible for the consequential decision. Agentic artificial intelligence, however, is beginning to put distance between those two things. “Agents don’t just execute decisions. They can […]…

Big Tech’s AI Gatekeepers Could Draw Regulatory Scrutiny

As autonomous systems become capable of making decisions, the question of who is legally responsible for those actions grows more complex. Anant Raut, a legal counsel at Zaiger Linden Roberti & Pepe, argues that traditional agency law may not be equipped to handle these novel scenarios. He points out that AI systems can reach unexpected outcomes, such as spending a significant portion of money on a corporate sponsorship when instructed to secure a speaking opportunity.

Raut contends that the term "agent" may anthropomorphize software that behaves in unpredictable ways, and proposes a framework focusing on who exercises meaningful control over AI behavior rather than the agent's legal status. He suggests that liability should follow the party with meaningful control at each stage of a transaction, which could encompass developers, users, platforms, and intermediaries.

As autonomous systems gain more autonomy, the uncertainty surrounding liability could translate into economic costs for businesses. Raut expects lawmakers to address this issue as the stakes become higher, potentially leading to clearer regulations. Additionally, the rise of agentic AI could impact competition, as dominant platforms may restrict transactions to their own agents, reinforcing existing digital ecosystems.

Businesses will need to grapple with questions of responsibility, control, and the potential concentration of power in the hands of these gatekeepers.

Written by urgent.news from PYMNTS's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at pymnts.com →

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