EU: Commission pulls AI Liability Directive

EU Commission withdraws AI Liability Directive. Industry welcomes move, citing competitiveness concerns. MEP Voss regrets loss, warns of potential fragmentation in AI liability regimes.

Key points: European Commission has withdrawn the AI Liability Directive, citing lack of "foreseeable agreement" as the reason for withdrawal

Why this matters: The withdrawal may reduce potential legal complexities for businesses deploying AI technologies, potentially encouraging innovation. The withdrawal of the proposed Directive was welcomed by industry groups, as a “positive and welcome development”, but regretted by German EPP MEP Axel Voss, who was rapporteur for the act, saying the directive was necessary to prevent fragmentation in the AI liability regime between the different member states as well as empowering wronged consumers.

What might happen next: The Commission may reassess its approach to AI liability, but may also look to deal with issues via more simplified pieces of legislation.