European Commission wants to hold manufacturers liable for damage caused by AI

The European Commission wants to modernize liability rules. It also wants to hold manufacturers of devices with artificial intelligence liable for damage. The proposals still have to be approved by the European member states.

The current liability rules are over forty years old, reports the EC. The updated rules should clarify who is liable when damage is caused by a device or software that uses artificial intelligence.

Two proposals from the European Commission are ready. The first proposal is about ‘modernizing existing rules on manufacturers’ strict liability for defective products, from smart technology to pharmaceuticals’. For example, when consumers are harmed by ‘unsafe products imported from outside the EU’, they can turn to the importer or the manufacturer’s representative in the EU for compensation, the committee reports. Furthermore, the new liability rules should place the burden of proof more on the manufacturer, rather than the consumer. It must prove that its products are safe for users and meet all legal requirements.

The second proposal is specifically about ‘harmonizing national artificial intelligence liability rules, making it easier for victims of AI-related damage to obtain compensation’. This can involve various types of damage, including privacy violation or data loss. For example, a person who has been discriminated against during a job application procedure due to the use of certain algorithms can also more easily qualify for compensation due to the new rules, the EC says.

It is uncertain whether and when the new liability rules will be introduced, as the proposals have yet to be approved.