Source: Cyber Security 360
The article discusses the urgent need for a clear and harmonized European legal framework on civil liability for damages caused by AI systems. Despite the AI Act’s recent provisions, the lack of specific liability rules risks legal fragmentation across EU member states, creating uncertainty for businesses and inadequate protection for citizens. A study commissioned by the European Parliament criticizes the current approach, which favors ex ante compliance and procedural rules over substantive liability. It advocates for a strict liability regime for high-risk AI systems to simplify compensation claims and internalize risks through insurance mechanisms. The insurance industry is expected to become a de facto regulator by setting standards and incentivizing best practices. The withdrawal of the proposed AI Liability Directive reflects political and industrial resistance, but the article stresses that ignoring liability issues endangers both innovation and consumer rights.