UPDATE — AUGUST 2025: The AI Liability Directive (AILD) is a real proposal, first introduced by the European Commission on 28 September 2022 (COM/2022/496 final). Its goal is to harmonize civil liability rules across the EU to make it easier for victims of AI-related harm to claim compensation. The directive complements the EU AI Act, which regulates AI risks but does not cover liability or damages.
As of August 2025, the EU AI Act is already law (adopted June 2024, in force since August 2024, with compliance deadlines phasing in from 2025 to 2027). The AI Liability Directive, however, is still under negotiation by the European Parliament and Council and has not yet been adopted. Once finalized, it will require transposition into national laws, meaning its practical effects will not be seen immediately.
ORIGINAL NEWS STORY:
EU Advances AI Liability Directive to Strengthen Accountability and Harmonize Civil Liability Rules
The European Union is proposing an AI Liability Directive, aiming to bridge critical gaps in the regulation of artificial intelligence (AI) across its member states. The directive, officially known as the Proposal for a Directive of the European Parliament and of the Council on Adapting Non-Contractual Civil Liability Rules to Artificial Intelligence, introduces specific rules to address the unique challenges posed by AI in terms of civil liability.
This proposal is a significant complement to the EU AI Act, which focuses on mitigating risks associated with AI technologies. However, even with these safeguards in place, there are scenarios where damage or harm may still occur. The AI Liability Directive is designed to ensure that individuals affected by AI-related incidents can seek and receive compensation effectively and fairly. By establishing a consistent legal framework across the EU, the directive also aims to eliminate the legal uncertainty that currently exists due to varying national liability rules.
The directive takes a measured approach, introducing targeted adaptations to existing civil liability rules rather than creating an entirely new legal regime. One of its key features is the introduction of rebuttable presumptions, which help ease the burden of proof for victims of AI-related harm. Under traditional fault-based liability systems, victims are required to prove a causal link between the fault and the damage suffered. However, due to the complexity, opacity, and autonomous nature of many AI systems, establishing such a link can be exceedingly difficult. The AI Liability Directive addresses this issue by shifting some of the burden from victims to those responsible for the AI system.
This proposal also seeks to harmonize how national courts across the EU handle cases involving AI. With varying legal interpretations and approaches in different member states, businesses and individuals face significant uncertainty, particularly in cross-border scenarios. The directive aims to provide clear guidelines that apply uniformly across the EU, fostering greater trust in AI technologies and facilitating their broader adoption.
In addition to establishing these harmonized rules, the directive includes provisions for the disclosure of evidence in cases involving AI systems. This is especially relevant for high-risk AI applications where access to information is crucial for determining liability. Courts will be empowered to order the disclosure of relevant data, helping claimants build their cases more effectively while ensuring that parties holding such information do not obstruct justice.
The directive’s emphasis on legal certainty is particularly beneficial for small and medium-sized enterprises (SMEs), which often lack the resources to navigate complex and fragmented liability regimes. By creating a predictable legal environment, the directive reduces compliance costs and encourages innovation across the EU’s AI sector.
Need Help?
If you have questions or concerns about the EU’s AI proposals and guidelines, or any global guidelines, regulations and laws, don’t hesitate to reach out to BABL AI. Their Audit Experts can offer valuable insight, and ensure you’re informed and compliant.
