AI explained: AI and shipping

AI-driven autonomous ships raise legal questions, and shipowners need to understand autonomous systems’ limitations and potential risks. Reed Smith partners Susan Riitala and Thor Maalouf discuss new kinds of liability for owners of autonomous ships, questions that may occur during transfer of assets, and new opportunities for investors. ----more---- Transcript: Intro: Hello and welcome to Tech Law Talks, a podcast brought to you by Reed Smith's Emerging Technologies Group. In each episode of this podcast, we will discuss cutting edge issues on technology, data and the law. We will provide practical observations on a wide variety of technology and data topics to give you quick and actionable tips to address the issues you are dealing with every day.  Susan: Welcome to Tech Law Talks and our new series on AI. Over the coming months, we'll explore the key challenges and opportunities within the rapidly evolving AI landscape. And today we will focus on AI in shipping. My name is Susan Riitala. I'm a partner in the asset finance team of the transportation group here in the London office of Reed Smith.  Thor: Hello, I'm Thor Maalouf. I'm also a partner in the transportation group at Reed Smith, focusing on disputes.  Susan: So when we think about how AI might be relevant to shipping, One immediate thing that springs to mind is the development of marine autonomous vessels. So, Thor, please can you explain to everyone exactly what autonomous vessels are?  Thor: Sure. So, according to the International Maritime Organization, the IMO, a maritime autonomous surface ship or MASS is defined as a ship which, to a varying degree, can operate independently of human interaction. Now, that can include using technology to carry out various ship-related functions like navigation, propulsion, steering, and control of machinery, which can include using AI. In terms of real-world developments, at this year's meeting of the IMO's working group on autonomous vessels, which happened last month in June, scientists from the Korean Research Institute outlined their work on the development and testing of intelligent navigation systems for autonomous vessels using AI. That system was called NEEMO. It's undergone simulated and virtual testing, as well as inland water model tests, and it's now being installed on a ship with a view to being tested at sea this summer. Participants in that conference also saw simulated demonstrations from other Korean companies like the familiar Samsung Heavy Industries and Hyundai of systems that they're trialing for autonomous ships, which include autonomous navigation systems using a combination of AI, satellite technology and cameras. And crewless coastal cargo ships are already operating in Norway, and a crewless passenger ferry is already being used in Japan. Now, fundamentally, autonomous devices learn from their surroundings, and they complete tasks without continuous human input. So, this can include simplifying automated tasks on a vessel, or a vessel that can conduct its entire voyage without any human interaction. Now, the IMO has worked on categorizing a spectrum of autonomy using different degrees and levels of automation. So the lowest level still involves some human navigation and operation, and the highest level does not. So for example, the IMO has a degree Degree 1 of autonomy, a ship with just some automated processes and decision support, where there are seafarers on board to operate and control shipboard systems and functions. But there are some operations which can be automated at times and be unsupervised. Now, as that moves up through the degrees, we get to, for example, Degree 3, where you have a remotely controlled ship without seafarers on board the ship. The ship will be controlled and operated from a remote location. All the way up to degree four, the highest level of automation, where you have a fully autonomous ship, where the operating systems of the ship are able to make their own d