New Jersey considers law to hold AI companies financially liable for harms

Democrats in the state Assembly proposed legislation to modernize state liability law to specifically cover crimes committed by AI products or agents. The bill, which was discussed during an Assembly hearing featuring a report from Phil Murphy, aims to make AI companies legally and financially liable for harms caused by their technologies. The proposal faces opposition from a leading business-lobbying group.

The push for this legislation is occurring as lawmakers seek to regulate AI liability in the absence of meaningful federal action. If enacted, New Jersey could become a national leader in establishing fundamental principles of regulation through product liability for AI technologies.