AI Business LensTHE BUSINESS OF AI, FOR PEOPLE WHO TEACH IT OR LEARN FROM IT
NBER Working Papers · September 28, 2026 · On the brief until October 12, 2026

Liability and Pricing of Dual-Use AI -- by Joshua S. Gans

EconomicsLaw
THE AI ANGLE
Serving as a shared input for cyberattacks, security defense, and productive work

A research paper models legal liability for artificial intelligence systems used by attackers, defenders, and productive businesses. It shows that holding providers liable raises prices and dampens attack efforts, but compensating victims also weakens defense. These findings indicate that full liability is rarely optimal when regulators want to preserve access for productive users.

Summary written by AI Business Lens with an AI model from the article at nber.org. It is not the article, and the publisher has not reviewed it. For publishers.

THE TEACHING ANGLE
Students can examine whether compensating cyberattack victims undermines their incentive to defend themselves.

Read the original at nber.org   Generate teaching or study materials

Instructors get discussion guides, assignments, and mini-cases. Students and readers get a plain summary, points to raise, an exercise, and a self-check. All built from the full article. A free account saves stories and gives you three generations. Stories stay on the brief for 14 days. After that this page keeps the link to the original.

More in Economics