AI Standard of Care by Industry
How traditional negligence frameworks apply when algorithms make decisions that affect human lives, livelihoods, and rights across 50+ industries.
Professional Services#
Licensed professionals face unique liability when integrating AI into practice.
| Industry | Key Issues |
|---|---|
| Legal Services | Attorney ethics, hallucination risks, malpractice |
| Legal AI Hallucinations | Court sanctions, fake citations, verification duties |
| Accounting & Auditing | PCAOB guidance, audit AI, professional standards |
| Architecture & Engineering | Design liability, BIM integration, professional negligence |
Financial Services#
High-stakes decisions with extensive regulatory oversight.
- Finance — Algorithmic trading, credit decisions, robo-advisors, SEC/FINRA compliance
- Insurance — Underwriting AI, claims denial algorithms, unfair discrimination
- Real Estate — Automated valuation, fair housing, appraisal bias
- Gambling — Responsible gaming AI, addiction prediction, regulatory compliance
Healthcare & Life Sciences#
Patient safety drives stringent oversight of medical AI.
- Healthcare Overview — Hospital liability, clinical decision support, FDA regulation
- Pharmaceutical — Drug discovery, clinical trials, adverse event detection
- Mental Health Apps — Therapy chatbots, crisis intervention, the Tessa eating disorder case
- Elder Care — Fall prediction, cognitive monitoring, staffing optimization
- Fitness & Wellness — Workout recommendations, injury liability, health claims
Transportation & Logistics#
Autonomous systems and fleet management create physical-world risks.
- Autonomous Vehicles — Manufacturer liability, driver monitoring, Level 2-5 distinctions
- Aviation — MCAS, autopilot liability, FAA certification
- Maritime & Shipping — Autonomous vessels, port operations, collision avoidance
- Logistics & Warehousing — Warehouse robotics, delivery optimization, worker safety
- Supply Chain — Demand forecasting, vendor selection, disruption liability
Employment & HR#
AI in hiring and management faces intense discrimination scrutiny.
- Employment — Hiring algorithms, performance management, ADA/Title VII
- HR & People Analytics — Retention prediction, compensation analysis, EEOC enforcement
Technology & Media#
The builders and deployers of AI face distinct liability exposures.
- Cybersecurity — Threat detection, automated response, breach liability
- Social Media — Content recommendation, addiction algorithms, Section 230
- Content Moderation — Automated takedowns, false positives, free speech
- Journalism & Media — AI-generated content, fact-checking, deepfake detection
- Advertising & Marketing — Programmatic ads, personalization, FTC compliance
- Telecommunications — Network optimization, customer service AI, 911 routing
Creative & Communications#
AI in creative fields raises IP and authenticity concerns.
- Creative Industries — Generative AI, copyright, authenticity
- Translation Services — Legal translation liability, medical interpretation, certification
- Voice & Deepfake — Voice cloning, synthetic media, consent frameworks
- Companion Chatbots — Emotional AI, relationship liability, the Character.AI cases
Retail & Consumer Services#
Direct consumer interactions create broad liability exposure.
- Retail & E-commerce — Recommendation engines, pricing algorithms, consumer protection
- Customer Service — Chatbot liability, escalation failures, consumer expectations
- Food Service — Kitchen robotics, allergen detection, delivery optimization
- Hospitality — Dynamic pricing, guest safety AI, staffing optimization
- Event Planning — Crowd management, safety prediction, ticketing AI
- Personal Services — Matching algorithms, background checks, gig worker liability
Education & Childcare#
Vulnerable populations require heightened duty of care.
- Education — Cheating detection, adaptive learning, student data privacy
- Education AI Standards — Emerging K-12 and higher ed policies
- Childcare & Education — EdTech safety, COPPA compliance, developmental AI
Government & Public Services#
Sovereign immunity doesn’t fully shield AI-driven decisions.
- Government — Benefits determination, predictive policing, due process
- Immigration — Visa processing, risk assessment, procedural rights
- Military AI — Autonomous weapons, targeting decisions, Laws of Armed Conflict
- Housing — Tenant screening, Section 8 administration, fair housing AI
- Parking & Traffic — Automated enforcement, red light cameras, appeals
Industrial & Infrastructure#
Heavy industry faces safety-critical AI deployments.
- Manufacturing — Industrial robotics, quality control, worker safety
- Construction — Site safety AI, autonomous equipment, building inspection
- Energy & Utilities — Grid management, outage prediction, nuclear safety
- Mining — Autonomous haul trucks, safety monitoring, environmental AI
- Agriculture — Precision farming, autonomous tractors, livestock monitoring
Specialty & Niche#
Unique sectors with distinct liability frameworks.
- Veterinary Medicine — Diagnostic AI, standard of care, malpractice
- Scientific Research — Research integrity, reproducibility, peer review AI
- ESG & Sustainability — Carbon tracking, greenwashing detection, disclosure AI
- Non-Profit — Donor analytics, grant-making AI, mission alignment
- Religious Organizations — Pastoral AI, congregant data, First Amendment
- Funeral Services — Grief chatbots, pre-need sales, memorial AI
Cross-Cutting Themes#
Across all industries, common liability patterns emerge:
1. The “Reasonable AI User” Standard#
Courts are developing expectations for what reasonable professionals should know about AI limitations in their field.
2. Duty to Verify#
In high-stakes decisions, human oversight of AI recommendations is increasingly required, not optional.
3. Documentation Requirements#
Organizations must document AI use, decision rationale, and human review to defend against liability claims.
4. Disclosure Obligations#
Many jurisdictions now require disclosure when AI significantly influences consumer-facing decisions.