The European Commission is to clarify the rules around liability for damage or injury caused by digital technologies such as artificial intelligence (AI). It modernises existing regulations around liability around the use of digital and refurbished products. The commission is also harmonising national regulations around liability.
An earlier survey by the European Commission in which 1,200 respondents took part found that when it comes to AI, rules are needed in many areas. These included rules on liability and safety. Most respondents supported mandatory rules in this area. Four in 10 respondents said they would prefer to see completely new regulations in this area. 33% consider amending existing regulations sufficient.
Compensation after damage and injury
The European Commission is to amend regulations around damage and injury caused by the use of digital and refurbished products. The European Commission is adopting two legislative proposals to this end.
Existing national legislation of EU member states around liability for damages and injuries caused by AI should also be harmonised. This should ensure that victims are protected by the same standards against damage caused by AI products and services as against damage caused by other circumstances.
Clarify regulations
With the changes, the European Commission not only wants to better protect users of digital, refurbished and AI products and services. It also wants to clarify regulations for businesses and make them both fair and more predictable. Among other things, this should support circular business models.
This will include an obligation for companies to address security vulnerabilities in products. If manufacturers fail to do so adequately, victims can seek compensation. These include robots, drones and smart home systems that become unsafe due to software updates.
Level playing field for European and non-European manufacturers
The European Commission also wants to create a level playing field for European and non-European manufacturers. If consumers are injured by products imported from outside the European Union, they can hold the importer or the manufacturer's European representative responsible for compensation.
Another aim is to tackle unfair treatment by algorithms. For example, if an algorithm discriminates against an applicant in a job application process, it can seek compensation.
'Allowing AI technologies to thrive'
"We want AI technologies to thrive in the EU. For this to happen, people need to rely on digital innovations. With today's proposal on civil liability around AI, we offer customers tools for recovery in case of damage caused by AI. This way they have the same level of protection as with traditional technologies and we ensure legal certainty for our single market," said Věra Jourová, Vice-President for Values and Transparency.
Internal Market Commissioner Thierry Breton said: 'The Product Liability Directive has been a cornerstone of the internal market for four decades. Today's proposal makes it fit for the challenges of the coming decades. The new rules reflect global value chains, promote innovation and consumer confidence and provide more legal certainty for companies involved in the green and digital transition."
'Ensuring consumer safety'
European Justice Commissioner Didier Reynders said: 'While taking into account the huge potential of new technologies, we must ensure consumer safety at all times. Good standards of protection for EU citizens are the basis for consumer trust and thus successful innovation. New technologies such as drones or delivery services managed by AI can only work if consumers feel safe and protected. Today, we are proposing modern liability rules that will do just that. We are making our legal framework fit for the reality of digital transformation."
Now that the European Commission has adopted the legislative proposals, the European Parliament will consider them. The European Council, made up of EU member states' heads of government, must also agree to the bills.
AI Act
The European Commission already adopted the AI Act in April 2021. This act aims to ensure the safety of and trust in high-risk AI systems developed and used in the EU. With the AI Act, the European Commission wants to protect the safety and fundamental rights of European citizens and businesses, on the one hand. On the other hand, it wants to strengthen investment in, embrace and innovation in AI. The legislative proposals now presented by the European Commission complement the AI Act with possibilities for civil claims for damages.
Author: Wouter Hoeffnagel
Image: Gordon Johnson via Pixabay
