The key issue in reducing risk of liability with expert systems: product or service

Depending on the specific expert system application, individuals and organizations involved in the expert system development and marketing chain may unwittingly surrender themselves to high-risk exposure to tort liability legal actions, in the event that an innocent third party should suffer physical harm. The degree of risk turns on whether the expert system is viewed by the court as a 'product' or as a 'service'. The author examines the implication of this determination in two areas of tort, product liability and negligence, and then outlines the issues surrounding the 'product-service continuum' as applied specifically to the expert system development and marketing environment. Finally, the author presents proactive measures that expert system developers and vendors should consider in order to minimize exposure to risk.<>