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Advances in artificial intelligence (AI) and automated robotics will profoundly influence space operations. By utilising machine learning and deep learning approaches, AI-enabled systems may accomplish tasks as well as improve their own performance. These capabilities are useful in the often-remote settings of outer space and will grow in value as automated space operations become more widespread. As AI extends throughout the space domain, automated algorithms will take on many of the roles that have historically been handled by humans. Artificial intelligence is progressing from theory to implementation in the space environment by exposing new satellites and orbital autonomous vehicles to new data. Even though all initial computational parameters are provided, such systems' outputs can be very unpredictable, putting people, property, and the environment at risk. This paper investigates the application of United Nations space treaties, selected regional AI regulations, and various 'soft-law' instruments and industry initiatives focusing on responsible AI system development to space-based AI systems. Following that, reforms are proposed to clarify the practical relationship between AI systems and the international legal regime that governs space, as well as a 'bottom-up' regulatory approach to better facilitate the future development of regulation governing the use of AI by the global space sector. While this work does not purport to provide a conclusive resolution to these multifaceted matters, its objective is to underscore significant obstacles that arise at the convergence of space law and AI, serving as a preliminary foundation for subsequent discussions on this issue. • Advances in AI and automated robotics will have a profound impact on space operations. Automated algorithms will take on roles traditionally handled by humans as AI becomes more widespread in space. • However, the unpredictable outputs of AI systems can put people, property, and the environment at risk, raising questions about liability. • The paper investigates the application of UN space treaties, regional AI regulations, and industry initiatives to space-based AI systems. • Reforms are proposed to clarify the relationship between AI systems and the international legal regime governing space. • A 'bottom-up' regulatory approach is suggested to facilitate future regulation of AI in the global space sector. [ABSTRACT FROM AUTHOR]