When AI spends our money, who pays if the robot gets it wrong? writes Dean Dunham KC

Now we’re approaching something much more significant as we’re going to let it spend our money.

AI shopping agents are being developed that won’t simply recommend which television, holiday or pair of trainers you should buy. They’ll be able to search for the product, choose between retailers and potentially complete the purchase for you.

That sounds incredibly convenient.

But some of the world’s biggest banks are now warning that the technology is developing faster than the consumer protections surrounding it and I think they’re right to be concerned.

Imagine telling an AI assistant: “Find me the cheapest new iPhone and buy it.”

It searches the internet, finds what appears to be a bargain and completes the transaction.

Then nothing arrives.

The website was fraudulent.

Who owes you the money?

Your bank? The AI company? The payment provider? Or are you simply told that you authorised the AI to make the purchase?

Here’s another scenario.

You tell your AI to book a £2,000 holiday.

It finds the perfect deal but chooses a payment method that gives you fewer protections than paying directly by credit card might have done.

The holiday company subsequently collapses.

Did the AI have a responsibility to consider your consumer rights when deciding how to pay?

These aren’t theoretical legal curiosities. They are questions we need answered before millions of consumers start handing AI access to their wallets.

And there’s an even bigger issue.

When an AI tells me that one television is the “best” one to buy, why has it chosen it?

Is it genuinely the best product for me or has that retailer paid for prominence?

We’ve spent years creating rules requiring influencers and online platforms to disclose advertising. We cannot now allow AI recommendations to become a new backdoor for undisclosed commercial influence.

I’m excited about what this technology could do.

An AI assistant capable of comparing thousands of products, checking prices and finding genuine bargains could give consumers extraordinary buying power.

But convenience must not come at the expense of protection.

The principle should be simple: Using AI to buy something should never leave you with fewer consumer rights than buying it yourself.

Before AI companies ask us to hand over our credit cards, regulators need clear rules covering liability, payment protection, fraud and sponsored recommendations.

Because when I make a bad purchasing decision myself, I know who’s responsible.

When my robot makes it for me, the answer shouldn’t be: nobody.

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Dean Dunham KC presents LBC's Consumer Hour every Sunday from 9pm-10pm.

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