We’ve previously touched on some of the issues caused by AI bias. We’ve described how facial recognition technology may result in discriminatory outcomes, and more recently, we’ve addressed a parade of “algorithmic horror shows” such as flash stock market crashes, failed photographic technology, and egregious law enforcement errors. As uses of AI technology burgeons, so, too, do the risks. In this post, we explore ways to allocate the risks caused by AI bias in contracts between developers/licensors of the products and the customers purchasing the AI systems. Drafting a contract that incentivizes the AI provider to implement non-biased techniques may be a means to limit legal liability for AI bias.