Reviving the AI Liability Directive: Challenges and Prospects

The Future of the AI Liability Directive

The European Commission first published a proposal for an AI Liability Directive (“AILD”) in September 2022 as part of a broader set of initiatives, including proposals for a new Product Liability Directive (“new PLD”) and the EU AI Act. The AILD was designed to introduce uniform rules for certain aspects of non-contractual civil claims related to AI, incorporating disclosure requirements and rebuttable presumptions to streamline the process.

However, unlike the new PLD and EU AI Act, which have both been adopted and are currently in force, the AILD has faced significant stagnation and resistance during its legislative journey.

Recent Developments

On January 21, 2025, the AILD seemed to gain renewed momentum when its rapporteur, Axel Voss, announced a timetable aimed at adopting the AILD by February 2026. This schedule included key dates for consultations, the drafting of a report, amendments, negotiations, and voting. In line with this timetable, a six-week stakeholder consultation commenced on February 3, 2025.

Nevertheless, just days later, on February 11, 2025, the European Commission published its 2025 work programme, which included plans to withdraw the AILD, citing “No foreseeable agreement” on the proposal as the reason. As of now, while the AILD has not been officially withdrawn, the Commission is set to notify the European Parliament and the Council of the European Union of its intentions regarding the withdrawal.

Opposition and Uncertainty

In the Council of the European Union, the AILD has encountered strong opposition from a coalition of countries, which may diminish the likelihood of continued efforts to advance the proposal. In the European Parliament, Voss has criticized the withdrawal plan; however, several influential lawmakers within the European People’s Party (EPP), to which Voss belongs, have also expressed concerns about the AILD.

Despite the AILD not being officially withdrawn and the possibility of revival remaining, the political opposition surrounding it has cast a shadow over its future. Observers will continue to monitor developments closely and provide updates as the situation evolves.

This overview highlights the complexities and challenges surrounding the AILD, emphasizing the need for clarity and consensus in the evolving landscape of AI regulation.

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