In the previous chapter, we discussed fault-based liability and strict liability with various modalities as they exist in LO. Bases of liability are probably the key question concerning the establishment of an appropriate liability legal framework. As a very nuanced and multilayered issue, depending on how it is set, the applicable basis of liability generates different, and sometimes undesirable, incentives to involved actors. It was impossible to examine the appropriateness of bases of liability without reference to how liability should be allocated in the first place. However, some of the fundamental settings around the allocation liability were omitted. This chapter is devoted to this very question. The reason why allocation of responsibility is treated separately lies in the fundamental change of the basic presumption on which tort law traditionally relies. Peculiar characteristics of AI render it sometimes uncontrollable by anyone, while, at other points, it is the manufacturer instead of the user who determines its operations.