China's Supreme Court Issues AI Dispute Guidelines and Autonomous Vehicle Liability Rules

On September 7, China's Supreme People's Court released its first judicial guidance document specifically targeting AI disputes, establishing clear rules for autonomous vehicle accident liability and penalizing misleading marketing. The guidance addresses critical issues including driver-assist collisions, AI face-swapping, algorithmic price discrimination, and intellectual property protection. This provides China's first nationwide official legal framework to determine accountability when AI systems and driver-assistance features cause harm. It provides victims with a clearer path to seek legal compensation while curbing deceptive marketing practices by automakers who exaggerate their vehicles' self-driving capabilities. Under the new guidance, if a vehicle defect combines with driver fault to cause harm, courts will support holding both the driver and the manufacturer or seller responsible under civil law. Additionally, manufacturers and sellers face civil liability if they mislead consumers regarding a vehicle's automation level, intelligence, performance, or intended use.