‘A Computer Can Never Be Held Accountable’ Says IBM. That 1979 Rule Still Holds—So Who Takes the Fall?

IBM’s assertion that computers cannot be held accountable underscores a persistent legal and ethical challenge in technology-driven decision-making. For middle-market credit professionals, this raises critical questions about liability and risk allocation when AI systems influence underwriting, compliance, or loan servicing. Understanding who ultimately bears responsibility in automated processes is essential for managing credit risk and structuring deals that incorporate advanced technologies without exposing lenders to unforeseen accountability gaps. This dynamic will shape contract negotiations and risk assessments in leveraged finance.