Source: National Law Review

National Law Review examines the emerging legal concept of “AI circuit breakers” incorporated into contracts to manage risks associated with AI system failures or malfunctions. These contractual provisions allow businesses to pause or stop AI operations under defined conditions to prevent harm.

The article explains how circuit breakers can limit liability, enhance control, and provide safeguards for companies relying on AI technologies. It discusses drafting strategies and legal considerations for including such clauses.

This innovation reflects growing attention to AI risk management in commercial law.