Proposed EU AI liability rules withdrawn

With the EU AI Act finalised, attention had recently turned to the adoption of the proposal adapting non-contractual civil liability rules to AI (AI Liability Directive or AILD), first tabled by the Commission in September 2022. This proposal was meant to complete Europe’s AI regulatory framework. However, the European Commission decided to withdraw the proposal in February 2025 due to a lack of agreement among stakeholders and calls for regulatory simplification in the digital sector.

The proposal aimed to address risks from specific uses of AI through rules focusing on fundamental rights and safety. It introduced uniform rules to ensure victims of AI-related harm receive the same protection as those harmed by other technologies. The proposal eased the burden of proof for victims by allowing a rebuttable presumption of causality and permitted national courts to order the disclosure of evidence about high-risk AI systems.

Background and reception

The AILD proposal was intended to complement the recently finalised Artificial Intelligence Act, which delayed substantial work on the directive by both the European Parliament and EU governments. Since its presentation, there was a general lack of interest from EU governments, with diplomats expressing indifference. Discussions emerged about the necessity of AI liability rules, given the simultaneous revision of the EU Product Liability Directive to include software. In July 2024, Axel Voss, a center-right German lawmaker, expressed concerns about overlaps with the new product liability rules but believed there were enough "loopholes" to proceed with the AILD.

Despite initial resistance, the European Commission remained committed to advancing the AILD. In July 2024, the Commission sent an updated proposal to the European Parliament and the Council, aligning it with the finalised AI Act and increasing the responsibility of companies deploying AI systems.

Withdrawal of the proposal

In its 2025 Work Programme, presented on 11 February 2025, the Commission listed the AI Liability Directive in the withdrawals section due to the lack of agreement on a final text. The Commission reserved the right to assess whether to table another proposal or choose a different approach. During a meeting of the European Parliament's Committee on Internal Market and Consumer Protection (IMCO) on 18 February, Ioana Mazilescu, Deputy Head of the "digital transition" unit within the Commission’s Directorate-General for Justice and Consumers (DG JUST), explained that the withdrawal was mainly due to the difficulties associated with the file.

Supporters of the proposal in Parliament cited pressure from the tech industry for regulatory simplification as the main reason for its withdrawal. MEP Voss criticised the decision, warning of a "Wild West" approach to AI liability. JURI Shadow Rapporteur Brando Benifei (S&D) expressed disappointment, viewing it as a setback for Europe's strategic influence on AI governance.

Within the IMCO Committee, however, the EPP, Renew, and Patriots groups rejected the proposal in a committee opinion published on 24 February, aligning with the Commission’s decision. The EPP Group called for an assessment before proposing new legislation, emphasising competitiveness and simplification.

Moving forward

The Commission intends to formally withdraw the text within six months, during which parliamentary work can continue. The withdrawal of this proposal shifts the debate to whether the Commission will propose an alternative approach or another type of regulatory initiative to address AI liability issues. This period will be crucial for stakeholders to voice their concerns and suggestions, potentially shaping the future of AI governance in Europe.