The growth of Artificial Intelligence and smart products in the European market is proving to be a complex challenge for EU law. In the face of new technologies, there has emerged a need to adapt existing regulatory schemes to ensure a consistent level of market security and consumer protection despite the different commercial contexts.
As such, in addition to the Artificial Intelligence Act, which has been designed a systematic and comprehensive intervention in the AI sector, European lawmakers are now focusing on the issue of civil liability.(...)
The Proposal for an “AI Liability Directive” (the “Proposal”, previously reviewed by us here) introduces a detailed liability system for the sector. In particular, the Proposal sets out uniform rules to alleviate the burden of proof for those who have suffered damage due to an AI system failure whilst also setting out broader protections for individuals. These changes, however, only apply to liability for wrongful behaviour and do not cover risks arising from the production or consumer use of smart products (save for violations of ex ante safety regulations).
"The increasingly widespread availability of smart products makes sectoral harmonisation measures insufficient and requires a full-scale review of market rules to ensure the delicate balance between consumer protection and incentives to invest in new technology."
As a result, the regulatory turmoil of the past few months has not affected s AI specialists alone, but all market participants, who are required to adapt to the constant regulatory upheavals in order to avoid liability and penalties that could damage them both economically and reputationally.
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