EU Commission Tables New Liability Guidelines for AI Technology to Safeguard Consumers
To address the potential harm brought on by artificial intelligence systems and other liability concerns coming from digital technologies, such as drones and smart gadgets, the European Union sought to update its product liability regulations on September 28, 2022. With the updated Product Liability Directive, the EU's legal system will align with the new digital era.
According to the Commission, the AI Liability Directive intends to give businesses and consumers more legal certainty as the usage of AI increases rapidly. According to the EU executive's plans, customers will still bear the burden of evidence in cases of harm or damage brought on by AI-enabled devices.
However, it will be lessened by applying a so-called "presumption of causality." This will solve the challenges faced by victims who must precisely describe how harm was caused by a specific error or omission, which can be challenging when attempting to comprehend and use intricate AI systems.
The directive grants victims the authority to request evidence from businesses and suppliers, giving them more resources to pursue monetary compensation in court.
According to the proposed order, the responsibility period will end if no litigation has been filed for ten years since the defective product was put on the market. If the injury is latent, that is, not immediately visible; this restriction period is extended to 15 years.
The new laws strike a compromise between protecting consumers and supporting innovation, reducing extra hurdles for victims to receive compensation while establishing assurances for the AI industry, including the right to contest a responsibility claim based on a presumption of causality.