On 7 July 2026, the UK Jurisdiction Taskforce (UKJT) published its Legal Statement on Liability for AI Harms under the private law of England and Wales. The UKJT is an initiative of LawtechUK, supported by the Ministry of Justice and chaired by Sir Geoffrey Vos MR. The Statement followed a public consultation opened in January 2026 and responds to industry demand for clarity on how civil law applies when AI systems cause loss to third parties.
The Statement analyses liability across five established private law categories: negligence, vicarious liability, professional liability, product liability under the Consumer Protection Act 1987, and the law of false statements including negligent misrepresentation and defamation. The UKJT concludes that no statutory gap requires immediate parliamentary remedy for non-deliberate AI harm in the categories examined. Professionals face negligence exposure for deploying AI inappropriately, selecting unsuitable models, or failing to validate AI outputs. They also face exposure for failing to use AI where a competent professional would have done so.
Law firms, financial services providers, healthcare operators, and technology companies that deploy AI in client-facing or advisory roles carry direct exposure under the Statement's negligence analysis. The UKJT distinguishes liability at three points in the AI supply chain: developer, integrator, and deployer. Each role carries distinct but potentially overlapping duties. Professional indemnity insurers can expect claims to be assessed by reference to the Statement's standards.
The Statement does not address deliberate misuse of AI, liability in criminal or public law, or sector-specific regulatory duties imposed by the FCA, the ICO, or under the EU AI Act. The UKJT notes, but does not resolve, whether AI-generated outputs embedded in a physical product can constitute a 'defect' under the Consumer Protection Act 1987. These open questions are expected to form the basis of follow-on consultation work.
Licentium advises clients on AI liability exposure, governance programmes, and contract protections for AI deployment in regulated sectors. We assist in mapping obligations under the UKJT Statement alongside sector-specific rules including FCA guidance and EU AI Act requirements. Work we undertake includes AI governance reviews, professional liability risk mapping, AI procurement contract drafting, and regulatory compliance assessments.
Source: UK Jurisdiction Taskforce, Legal Statement on Liability for AI Harms, 7 July 2026, LawtechUK