The European Commission has abandoned its plans to impose civil liability rules on companies using harmful AI systems, sparking criticism from EU lawmakers. The proposed AI Liability Directive aimed to protect consumers by making it easier for them to claim damages for AI-related harm. However, the Commission cited a lack of agreement among lawmakers as the reason for dropping the plans.
Axel Voss, the EU Parliament's lead representative for developing liability rules, called the move a "strategic mistake" that would lead to legal uncertainty and favor big tech companies. Voss warned that AI liability would now be dictated by a patchwork of 27 different national legal systems, potentially suffocating European AI startups and SMEs.
The decision has also drawn attention from industry experts. Peter van der Putten, director of Pegasystems' AI Lab, believes the impact may be relative, given new regulations like the EU AI Act, which still protects consumers and entities from AI-related harm. Van der Putten suggests the decision might create a more aligned regulatory environment by avoiding unnecessary litigation.
The EU Commission's decision comes after US Vice President JD Vance expressed concerns about the EU's regulatory approach to AI, urging a more open and collaborative approach. The Commission will reassess whether to propose alternative approaches or table another proposal. Critics argue that this move may undermine consumer protection and innovation in the AI sector.
As the EU navigates the complex landscape of AI regulation, the decision to scrap liability rules raises questions about the balance between innovation and consumer protection. The outcome will likely have significant implications for the future of AI development and deployment in the EU.
