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We propose a decentralized Explanation System generating such explanations while preserving the advantages of decentralized control: separation of concerns, heterogeneity, flexibility.

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By contrast users expect coherent system-wide explanations, as if they were generated by a single agent. However within the IoT context, Cyber-Physical Systems (CPS) are decentralized, with multiple agents coordinating their decisions to control the overall CPS. While the increasing demand for explanations led to many advances in Explainable Artificial Intelligence (XAI), most solutions focus on systems where a single agent takes all decisions to be explained. The Internet of Things (IoT) has been a prominent application for Intelligent Systems in recent years. Our main conclusion is that the world of IoT demonstrates a need to consider recasting the concept of product to reflect the frequent inextricable mixture of hardware, software, data and service We then consider the extent to which certain statutory regimes may treat IoT contracts in terms of addressing two characteristic contractual concerns: liability attribution and unfair terms. After touching on some general contract law issues in relation to the IoT supply chain, we examine the rights and obligations represented in these legals and discuss the extent to which, collectively, they present a coherent and comprehensible private law framework.

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We focus on the ‘legals’ of Nest (contractual documents, licences, etc.) to provide a case study of IoT complexity. In considering IoT contracts, this paper adopts a case study approach, examining the complexity of IoT through the lens of a specific product: the Nest connected thermostat, part of the Nest Labs business and owned by Google. For our purposes, the ‘Thing’ in the IoT is any physical entity capable of connectivity that directly interfaces the physical world, such as embedded devices, sensors and actuators. The world of the ‘Internet of Things’ (‘IoT’) is just one manifestation of recent developments in information and communication technologies (‘ICTs’), closely tied to others, including ‘cloud computing’ and ‘big data’.







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