On 31 July 2025, the Law Commission published a discussion paper on AI examining key legal challenges such as transparency, liability and whether certain AI systems might one day be granted legal personality. The paper does not propose immediate reforms but highlights the need to consider these issues as AI continues to develop.
The Law Commission’s new discussion paper aims to raise awareness of the legal issues that arise from the deployment of AI and to identify areas where future reform may be required. While not advancing specific proposals, the paper encourages debate about how the law should respond to technological change.
A central concern identified in the paper is lack of transparency. Many AI systems operate as “black boxes”, making it difficult to determine how or why a particular outcome is reached. This creates challenges in legal contexts, especially when damage is caused, as questions of causation and responsibility can be difficult to establish.
To address these problems, the paper raises the possibility of granting legal personality to some AI systems. This could, in theory, provide a clearer framework for liability and accountability. However, the Commission also notes significant objections. Organisations might use AI systems to shield themselves from liability. AI systems would need to hold funds or have mechanisms in place to satisfy claims, creating complex legal and financial structures.
The paper stops short of proposing concrete reforms but acknowledges that, as AI technology advances, the question of granting legal personality to some systems is likely to attract increasing attention. By flagging the issue now, the Law Commission signals that future developments in AI could drive the need for substantial changes in liability frameworks.
You can reach the Law Commission, AI and the Law: Discussion Paper <a href="https://lawcom.gov.uk/publication/artificial-intelligence-and-the-law-a-discussion-paper/" target="_blank" class="news-text_link">here</a>.
