AI Liability Laws establish legal accountability for harms caused by AI systems, addressing critical questions about whether manufacturers, developers, businesses, or users should be held responsible for damages. These laws face complex challenges from black box decision-making and varying global regulations like the EU AI Act, which imposes strict rules on high-risk applications.

As data privacy regulations like GDPR and CCPA become stricter, organizations are leveraging AI to automate compliance processes, enhance data security, and manage user rights efficiently. AI automates tasks such as classifying sensitive data, tracking user consent, and generating audit logs while strengthening security through anomaly detection and automated access controls.