EU Lawmaker Engages Businesses on AI Liability Rules
The AI Liability Directive is set to undergo significant scrutiny as EU lawmakers reach out to businesses to assess the necessity and potential scope of upcoming legislation aimed at regulating artificial intelligence.
Background of the AI Liability Directive
Originally, the AI Liability Directive was intended to be launched in conjunction with the AI Act. However, as of now, the implementation of specific rules regarding AI liability remains in limbo. The European Commission proposed the directive in 2022 to modernize existing legal frameworks, ensuring that protections against harms caused by AI systems are uniform across the European Union.
Consultation Process Launched
MEP Axel Voss from Germany’s EPP has initiated a consultation that invites companies to engage directly with the European Parliament as part of an effort to gauge the need for these liability rules. This consultation opened on February 13, 2025, and will remain accessible until March 17.
The questionnaire posed by Voss seeks to determine whether AI systems introduce unique legal challenges that existing laws do not adequately address. It also questions whether the establishment of liability rules could stifle innovation.
Diverse Liability Regimes Across the EU
Voss highlights a significant concern: without a unified framework, companies aiming to market their products and services across the EU may face 27 different liability regimes. This variability could lead to extensive legal uncertainty and increased litigation costs, particularly detrimental to small and medium-sized enterprises (SMEs) and startups that often lack the legal expertise needed to navigate such complexities.
Implications of the Current Product Liability Directive
Critics, including the Brussels tech lobby and consumer organizations, have expressed skepticism regarding the necessity of additional rules, arguing that existing issues are already addressed under the revamped Product Liability Directive (PLD). However, a recent study presented to the Parliament’s legal affairs committee (JURI) indicated that large language models, such as ChatGPT and Claude.ai, may present challenges that fall outside the current PLD’s scope.
Next Steps
Looking ahead, Voss plans to publish a draft report by June 4, followed by a discussion in the JURI committee at the end of the month. This process underscores the EU’s commitment to addressing the complexities and challenges posed by rapidly advancing AI technologies while balancing the need for innovation and consumer protection.
