Revolutionizing Liability: The Impact of New EU Regulations on AI and Products

A New Liability Framework for Products and AI

The introduction of the EU’s landmark Artificial Intelligence Act (AI Act) marks a significant shift in how liability is assigned in the realm of technology. This comprehensive legal framework for AI, effective from 1 August 2024, has prompted a reevaluation of the EU’s liability rules, particularly in light of the unique risks associated with digital technologies.

The New EU Product Liability Directive (PLD)

One of the most pivotal changes is the new EU Product Liability Directive (EU) 2024/2853 (PLD), which replaces the nearly 40-year-old predecessor. The new PLD imposes strict, or “no-fault”, liability on manufacturers, suppliers, and other entities for defective products. Enforced from 8 December 2024, member states have until 9 December 2026 to integrate these rules into their national laws.

This directive aims to provide a robust legal framework to address the challenges posed by products that integrate software and AI. It ensures that users alleging harm from these technologies have a clear legal pathway to seek compensation.

Key Provisions of the New PLD

The new PLD introduces several essential changes:

  • Expanded Definition of “Product”: This now includes digital manufacturing files and standalone software, with AI also classified as a product.

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