Internet of Thing (IoT)s. It focuses in particular on the question of liability in circumstances where an IoT system has not performed as expected and where this has resulted in loss or damage. The authors argue that the combination of AI and the IoT raises several novel aspects concerning the basis for assessing responsibility and of allocating liability for loss or damage, and that this will necessitate the development of a more creative approach to liability than generally followed in many legal systems. Linear liability based on contractual relationships and fault-based or strict liability of a wrongdoer in tort law are no longer sufficient to deal with the complex issues associated with the interaction of AI and the IoT. According to the authors, the values underpinning established liability systems, particularly in the field of consumer protection law, should be maintained in the context of new digital technology applications. The adoption of new digital technology applications cannot be a basis for imposing a lower threshold of liability than the level of liability established in other contexts.