AI is changing the world, quickly. But will it change the auto industry, the legal industry and the Lemon Law specifically? Of course it will. I absolutely envision the day when you pull your vehicle into a service department, and it is connected to AI technology and repaired promptly without the need for a mechanic. I also envision a day when most vehicles, internal combustion engine, (“ICE”), and electric vehicles, will be repaired remotely, without the customer even going to the repair facility. 

In response to these tech advances, the Lemon Law must be updated to account for changes to the way vehicles are sold and repaired. Here are some ways that AI will impact Lemon Laws: 

Change in the nature of defects

Lemon laws have historically focused on mechanical defects, but automated features could become a greater source for defects and hence, Lemon Law claims as AI becomes more common in automobiles.  

Outdated Lemon Laws

The Michigan Lemon law was enacted in 1986, but the automotive industry has changed significantly since that time. Even before the onset of computer-aided diagnosis and now AI, the original Lemon Law statute needed an update. Now and moving forward, the language of the statute is light years behind. The complexity of technology and software is becoming more integral to operating the vehicle and repairing the vehicle, and Lemon Laws have not kept pace.

What is on the Horizon?

AI has the potential to significantly influence Lemon Law cases and auto warranty laws in several ways, particularly in the areas of vehicle diagnostics, legal processes, and consumer protections. Here are some possible changes:

1. Improved Diagnostics and Evidence Collection can streamline the Lemon Law process

AI-powered diagnostic tools can provide detailed and accurate data on vehicle malfunctions. This can actually strengthen consumer claims. Advanced AI systems in vehicles can log and analyze patterns of malfunctions, providing solid evidence to support Lemon Law claims. Clear diagnostic data can help resolve disagreements between consumers and manufacturers, (and Lemon Lawyers), more efficiently. This can actually lead to disputes and lawsuits being resolved faster and more efficiently.

2. Enhanced Vehicle Monitoring

AI systems in vehicles, such as predictive maintenance and telematics, will be able to monitor and report on a vehicle's performance in real time. These advancements could actually lessen Lemon Law claims by identifying and addressing issues before they escalate. Enhanced monitoring could also create liability challenges. If AI misdiagnoses a problem or fails to alert a driver, it may lead to legal questions about accountability (manufacturer vs. software provider), and a new category of lawsuits.

3. AI in Legal Processes

AI tools like machine learning models can be used in Lemon Law cases by lawyers and courts Predictive analysis could be able to predict case outcomes based on historical data, helping parties decide whether to settle or proceed to trial. Moreover, lawyers will be able to use advanced AI tools to quickly research relevant case law and statutes, better and faster. AI-driven apps could guide consumers through Lemon Law claim processes, making it easier to file informal claims, search for the best Lemon lawyer and determine whether they are more likely to win or lose. Finally, AI algorithms could also generate competitive settlement offers to help resolve lemon law cases before they become more costly. 

4. Broader Implications for Warranty Law

AI could redefine the scope of auto warranties because of the changes noted above. As vehicles become more reliant on AI, warranties will need to cover software bugs or updates that cause malfunctions. AI diagnostics could help meet “reasonable repair attempts” thresholds faster, potentially speeding up Lemon Law claims. Consumers may demand access to AI-generated data to substantiate claims, while manufacturers might resist sharing proprietary algorithms.

5. Ethical and Consumer Protection Considerations

With manufacturers and automobile dealerships in control of AI systems, diagnostics could be created to favor manufacturers by underreporting or ignoring defects and/or consumer complaints. Moreover, most consumers may not understand how AI in vehicles impacts their rights under Lemon Laws and warranties, necessitating updated education campaigns and regulations.