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Who is Liable When AI Makes a Serious Mistake? Managers Disagree

A Wharton School study reveals managers are divided on accountability for AI errors. As companies grant AI more responsibility, the potential for impactful mistakes grows.

14 October 2026
Who is Liable When AI Makes a Serious Mistake? Managers Disagree

A recent study from the Wharton School at the University of Pennsylvania found that managers are divided on who should be held responsible when artificial intelligence systems make significant errors. The research highlights a growing accountability issue as businesses increasingly delegate tasks to AI.

When an AI bot makes a serious mistake, managers do not agree on who should be held liable. Approximately one-quarter of respondents blamed the employee using the tool, while another quarter pointed to that employee's manager. A similar share attributed responsibility to the company's risk team. Around 10% blamed the AI vendor, and a similar percentage reported being unsure.

The findings indicate uncertainty among leadership regarding the boundaries and consequences of evolving AI technology. This ambiguity could complicate AI adoption in organizations where clear lines of responsibility are crucial.

The survey included over 1,000 business leaders, such as managers, directors, executives, owners, and founders. The study sheds light on the increasing role of AI in the workplace and the associated ethical and administrative challenges.

Original source: entrepreneur.com