European Union: European Parliament's Committee on Internal Market and Consumer Protection adopted opinion recommending rejection of the Artificial Intelligence Liability Directive

On 20 May 2025, the European Parliament's Committee on Internal Market and Consumer Protection (IMCO) adopted an opinion recommending the rejection of the Artificial Intelligence (AI) Liability Directive (AILD). The Directive applies to providers and users of AI systems, particularly in high-risk contexts, and could affect small and medium-sized enterprises and digital sector enterprises. The opinion argues that the proposal is redundant given the recent entry into force of the AI Act and the adoption of the revised Product Liability Directive, which already impose enhanced obligations on AI developers and users. It raises concerns about the absence of market data, reliance on hypothetical scenarios in the Commission’s impact assessment, and unresolved definitional and procedural issues. The opinion warns that moving forward without evaluating the effects of existing legislation could deter innovation, burden national legal systems, and encourage predatory litigation.