AI use raises new questions of professional liability, says AG

Attorney-General Dusuki Mokhtar warned that the growing use of artificial intelligence (AI) raises new questions of professional responsibility and legal liability. In his keynote address at the inaugural Financial Lines Forum 2026, Mokhtar emphasized that professionals such as doctors and company directors must understand the reliability and limitations of AI systems and know when to question their output.

Mokhtar stressed that institutions adopting AI must comprehend why the technology is utilized, the risks arising from its use, and the necessary safeguards to manage those risks. He reiterated that while technology may assist professional judgment, effective human oversight remains essential.

The issue, according to Mokhtar, now encompasses governance, professional responsibility, and human oversight, with potential implications for legal liability and insurance. Particularly relevant is the increasing use of AI in healthcare and corporate decision-making.

In the context of medical negligence, Mokhtar highlighted that the government, as a major healthcare provider, must balance patient rights with the challenges faced by doctors making clinical decisions in uncertain circumstances. He clarified that not every error of judgment, adverse outcome, or medical complication constitutes negligence. Instead, the clinical decision should be evaluated based on the circumstances and information available at the time, rather than solely with the benefit of hindsight.

Mokhtar also stressed that damages in medical negligence cases should be grounded in proven loss and established legal principles, not sympathy or emotion. For corporate governance, he noted that directors are expected to exercise proper care and attention, with the decision-making process being as crucial as the ultimate outcome.

He added that directors' and officers' liability insurance can mitigate the financial impact of claims for companies and their directors but cannot substitute for sound decision-making, proper internal controls, or professional advice.