How are AI systems categorized legally?

AI systems are categorized legally as products, whether in software or physical form, because they represent a tangible asset or service that can be developed, sold, and utilized. This classification allows for the application of existing products liability laws, consumer protection laws, and regulations that govern various industries. By considering AI systems as products, regulators can establish guidelines for their development, deployment, and accountability for potential harm or misuse.

This legal categorization also recognizes the diversity within AI systems, which can range from software applications to hardware devices integrating intelligent algorithms. It emphasizes the need for regulatory frameworks that ensure these products comply with safety, ethical, and legal standards, providing protections for users and consumers alike.

While the other options do not accurately encapsulate the legal categorization of AI systems, they emphasize various unrelated aspects, such as non-products or digital currencies, which do not align with the broader definition of AI in a legal context.