Your AI vendor could land you in legal hot water – what business experts say you must do

AI models absorb human biases from training data. Customers can be as liable as AI vendors themselves for AI-led mistakes. Experts advise knowing your full stack and planning ahead. Large language models are sold on the promise of efficiency, faster decision-making, and a higher benefit-to-cost ratio compared to headcount expansion and employee onboarding in several scenarios. But what if all that promised efficiency has serious drawbacks — and comes with a secret accountability price tag? Gartner predicts that AI spending across corporations and enterprises will exceed $2.5 trillion by the end of 2026. At the same time, companies including OpenAI, Replika, Clearview, and Character.ai have been fined millions of US dollars — often for mistakes their models make due to biased training data. And the chain of liability does not end with the AI vendor. Also: If your AI-generated code becomes faulty, who faces the most liability exposure? In Moffatt v. Air Canada, the British Columbia Civil Resolution Tribunal held Air…