EU Parliament Pushes Forward on AI Liability Rules
The European Commission has decided to remove the AI Liability Directive from its 2025 work program due to stalled negotiations. Despite this, the European Parliament’s Internal Market and Consumer Protection Committee (IMCO) voted to continue working on liability rules for AI products. Political group coordinators within the committee are striving to keep the directive on the political agenda, although the Legal Affairs Committee has not yet reached a decision. The Commission has indicated that the proposal could remain if extensive work is undertaken by the Parliament and EU Council.
The AI Liability Directive was initially proposed in 2022 alongside the EU’s AI Act, which seeks to regulate AI systems based on their societal risk. The Commission’s decision to potentially withdraw the directive has led to mixed reactions among lawmakers. German MEP Axel Voss criticized the move as a strategic error, while fellow German MEP Andreas Schwab suggested focusing on the AI Act first and reconsidering the liability rules in two years.
Center-left groups have expressed disappointment over the withdrawal plans. MEP Marc Angel, on behalf of Brando Benifei, emphasized the importance of harmonized rules for creating a fair and clear framework across Europe. Concerns have been raised about the EU’s direction in AI legislation, with a call for real accountability and commitment. Kim van Sparrentak highlighted the need for liability rules to protect SMEs and individuals rather than burdening companies.
The tech industry and consumer organizations are divided over the necessity of additional liability rules. Tech representatives argue that existing issues are addressed under the updated Product Liability Directive (PLD), while consumer groups support the new legislation. A recent study by the Parliament’s research service highlighted potential challenges with large language models like ChatGPT, which may not be adequately covered by the current PLD.
Source: Lawmakers reject Commission decision to scrap AI liability rules