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48 Sydney L. Rev. 1 (2026)

handle is hein.journals/sydney48 and id is 1 raw text is: The Applicability of Product Liability to Artificial Intelligence Systems Son Tan Nguyen* Abstract In this article I examine the applicability of the Australian Consumer Law provisions on product liability for defective goods to artificial intelligence ('Al') systems. I argue that significant reforms are necessary to effectively address defects in Al systems. Key areas for reform include clarifying the term 'component' of goods to encompass digital elements such as AI-related services and revising the classification of manufacturers to reflect the roles of various parties in Al development and deployment. Most critically, the test for assessing defectiveness should be reconstructed to capture the distinctive characteristics of defects in Al systems. Moreover, the scope of actionable damage should be expanded to ensure comprehensive protection for individuals harmed by defective Al systems. Drawing on comparative insights from the European Union and the United States, I suggest that the successes and limitations of these jurisdictions in addressing liability for defective goods provide valuable lessons for Australia to strengthen its product liability regime in the age of AI-driven technologies. I Introduction Artificial intelligence ('Al') systems, characterised by their ability to perform tasks such as learning, reasoning, problem-solving, and decision-making, have rapidly advanced over the past few decades. 1 These systems range from simple algorithms embedded in everyday applications to complex neural networks driving technologies like autonomous vehicles, medical diagnostics, and financial trading.2 They are Please cite this article as: Son Tan Nguyen, 'The Applicability of Product Liability to Artificial Intelligence Systems' (2026) 48 Sydney Law Review 20476:1-32 <https://doi.org/10.30722/slr.20476>. This work is licensed via CC BY-ND 4.0 https:/creativecommons.org/licenses/by-nd/4.0. Unmodified content is free to use with proper attribution. Senior Lecturer and Senior Program Manager, Accounting and Law, RMIT International University Vietnam, Ho Chi Minh City, Vietnam. Email: son.nguyentan@rmit.edu.vn. ORCID iD: G https:/orcid.org/0000-0002-7798-0153. Stuart Russell and Peter Norvig, Artificial Intelligence: A Modern Approach (Pearson, 4th ed, 2021) 19-22; Margaret A Boden, Artificial Intelligence: A Very Short Introduction (Oxford University Press, 2018) 1; Ian Goodfellow, Yoshua Bengio and Aaron Courville, Deep Learning (MIT Press, 2016) 9. 2 Russell and Norvig (n 1) 45-8.