EU abandons AI liability rules

The European Union has refuted suggestions that the recent decision to abandon the AI Liability Directive was made under pressure from the Trump administration. This bill, introduced in 2022, was supposed to simplify the procedure for consumers to file claims in case of damage caused by products and services using artificial intelligence.

In an interview with the Financial Times, EU digital chief Henna Virkkunen stated that the cancellation of the proposal is linked to the bloc’s desire to increase competitiveness by reducing bureaucracy and simplifying regulation. According to her, the upcoming AI code of practice, which will be tied to the EU AI Act, will limit reporting requirements within the framework of existing rules.

The statement came against the backdrop of US Vice President JD Vance’s speech at the Paris AI Action Summit on Tuesday, where he called on European legislators to reconsider their approach to regulating technology and join the US in utilizing “AI opportunities.”

One day after Vance’s speech, the European Commission published its work program for 2025 under the slogan “a bolder, simpler and faster” Union. The document officially confirmed the abandonment of the AI liability proposal, while simultaneously presenting plans to stimulate regional development and implementation of artificial intelligence.

This decision reflects a substantial change in the EU’s approach to regulating artificial intelligence technology, where the emphasis shifts from consumer protection to supporting innovation and competitiveness of the European technology sector.