The Warranty Problem: Who Pays When Your AI Feature Is Wrong?
· 9 min read
Every software warranty ever written assumed deterministic behavior. You ship a function, it returns the same output for the same input, and your warranty covers the gap between documented behavior and actual behavior. AI features shatter that assumption entirely.
When your LLM-powered feature tells a customer something wrong — and that wrong thing costs them money — traditional warranty language leaves everyone pointing fingers at everyone else.
This is not hypothetical. Cumulative generative AI lawsuits in the U.S. passed 700 between 2020 and 2025, with year-over-year filings accelerating by 137%. The legal infrastructure governing software liability was built for a deterministic world, and the mismatch is already causing real damage.
