The growing incorporation of Artificial Intelligence (AI) in business strategy and decision-making introduced Substantial moral and Judicial dilemmas particularly concerning liability for AI- driven actions. The use of Artificial intelligence to inform business decision making will create new legal issues that may push the limits of current legal frameworks for holding entities liable. This article will identify the current state of liability under which companies are responsible for damages caused by their AI, as well as to what extent previous models of liability such as negligence, strict liability, and vicarious liability can be applied to AI algorithms. One factor that creates substantial difficulties for establishing proximate cause or foreseeability, both of which are fundamental components of tort law, is the "black box".

To determine whether there are differences in regulation across different countries regarding AI and its use as a tool for business decision making, this article will compare the regulations from major markets around the world including India, China, Canada, Europe and the U.S., focusing on the European Union's regulatory approach through the AI Act and the revision to its Product Liability Directive.

As companies become increasingly reliant on AI for all types of strategic and operational decisions, this article identifies several gaps in current regulatory approaches and provides guidance on future development of robust, fair liability regimes that allow for continued technological innovation while also holding companies responsible for the decisions made by their AI.