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Will AI adoption lead to more class action lawsuits?

Keir Starmer’s recent pledge to establish the UK as a global leader in artificial intelligence (AI) has been met with optimism. Promising to boost growth and innovation, his vision of the UK as a ‘great AI superpower’ could open doors to technological advancements and economic opportunities. However, challenges loom.

AI’s transformative potential is undeniable, but it carries risks if not developed and deployed responsibly. Among these are concerns around the use of data and the threat of inherent bias in AI systems – issues that could lead to a rise in class action lawsuits.

Data and AI: a legal minefield

AI thrives on data. It uses vast amounts of information to learn, make predictions, and support decision-making. But what happens when this data is mishandled or used without proper consent?

High-profile data protection cases -including those against British Airways and Ticketmaster – have highlighted how organisations have landed in hot water for misusing personal data. In 2020, BA was fined £20 million by the UK’s data protection watchdog for a data breach which affected more than 400,000 passengers, while Ticketmaster was fined £1.25 million for failing to keep its customers’ payment data secure.

AI systems could heighten such risks. And while the Prime Minister has pledged to protect health data, robust measures will be needed to ensure sensitive information remains secure.

If algorithms rely on flawed or unethically sourced data, or if breaches occur, the consequences for individuals could be severe – financially, reputationally, or otherwise. Such scenarios provide fertile ground for class actions, as affected groups come together to hold organisations to account.

The problem of bias in automated decision-making

AI learns from historical data, which can be shaped by societal inequalities and human prejudices. When these biases are embedded into algorithms, they can perpetuate and even amplify unfair treatment.

Imagine an AI tool used to screen job applicants rejecting candidates based on factors tied to gender or ethnicity. Not only would this be ethically indefensible, but it could also lead to costly lawsuits for discrimination.

For example, a financial AI system incorrectly flagging individuals as high-risk could lead to widespread claims for wrongful denial of credit or loans. Similarly, medical AI that misdiagnoses due to biased data could expose the NHS to negligence claims.

Preparing for the future

The promise of AI is huge, and the Prime Minister’s ambition to use the technology to boost growth could pave the way for incredible innovation. But AI adoption must be accompanied by accountability. And, as technology evolves, so must the legal frameworks designed to protect people from its unintended consequences.

At the same time, organisations using AI must take proactive steps to mitigate risks. This includes conducting thorough audits, ensuring transparency in how AI decisions are made, and implementing robust safeguards against bias.  Without these measures, the push to adopt AI could backfire, exposing businesses to reputational damage and legal action.

How to protect yourself

AI is becoming a part of our daily lives, but that doesn’t mean you should accept its decisions without question. If you’ve been unfairly treated due to an algorithmic decision – whether in accessing credit, applying for a job, or another area – you may not be alone.

At Join the Claim, we shine a light on consumer injustices and help the affected get justice.

Register with us today to receive updates on breaking AI compensation claims that you could be eligible to join.

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