European Union: Submitted Proposal for a Directive on adapting liability rules to artificial intelligence including transparency requirements

On 28 September 2022, the European Commission published the Proposal for a Directive on adapting non-contractual civil liability rules to artificial intelligence. The Proposal would introduce transparency requirements for high-risk artificial intelligence (AI) systems and would oblige them to disclose information on their systems in the actions brought before the civil court. Under the proposed Directive, victims would be granted the right to claim damages for injury to their life, property, health and privacy resulting from defective products or the fault or omission of a provider, developer or user of AI technology. Furthermore, the Proposal would give consumers the right to claim damages if a recruitment software based on AI was found to be discriminatory. Finally, the Proposal would establish uniform rules on AI liability in the European Union and support the AI sector by providing more guarantees for individuals and companies.