Comment by polytely
3 hours ago
how does this work from a liability standpoint? seems very risky for the person who is legally responsible for the business
3 hours ago
how does this work from a liability standpoint? seems very risky for the person who is legally responsible for the business
LLM magic-8-ball says: Don't worry about! Shall I spin up an agent which handles business liability for you?
Accountability, that's the liability everyone seems to have forgotten in our LLM-driven era. You can close your eyes as much you want during your sessions with Claude or whatever, at the end of the day, only a human can be held accountable.
Not too hopeful here as we see the major labs continuously break rules and are not held accountable for anything. Accountability in general is on a major decline, in case no one has noticed.
That's just it, though: we don't hold humans accountable.
Incorporation is a way to split a human's financial assets from the company they run so that they don't lose everything when the company is successfully sued. Corporate governance boards often have the C-suite executives they're meant to govern on the board. The average person does not have the financial resources needed to take on most companies in court, no matter how justified the suit might be. Companies force arbitration clauses in license agreements at will. Companies like Meta settle with the government for pennies on the dollar in massive lawsuits.
Effectively, at the scale many tech companies work at, there is no effective legal way to hold the company accountable.
If you use this as a (legal/registered) business, it will be that legal business entity that is responsible. If that business want's to blame the software, it can do so and go after the makers of the software, but that remains a matter between that business and its "supplier". It won't absolve the business for whatever damage it does downstream.
Running this as an individual, without the legal shielding a business typically gives you against being prosecuted on personal title, seriously risky. There will no doubt be "bros" that will do it anyway and flaunt all they've achieved with that. But they might be just one glitch away from going to jail (if not for running a business without a registration, which in many jurisdictions is illegal by itself).
In many countries directors can be held responsible a lot of things if they are negligent. For example, in UK law keeping trading after you should have known a company was unable to meet its liabilities can make directors responsible for its debts. A director might well be negligent if they failed to adequately check that an AI was not doing anything dangerous.