Revised Product Liability Directive
Overhaul of the EU product liability regime, explicitly extended to software and AI systems.
The revised Product Liability Directive modernizes the European no-fault producer liability regime, dating from the 1980s, to adapt it to the digital economy. Its main innovation is explicitly including software and artificial intelligence systems in the notion of product, so that damage caused by a software or algorithmic defect now clearly falls under this strict liability regime, without the victim having to prove fault. The text also extends the notion of defect to security failures, updates and continuous learning, and eases the burden of proof in cases of technical complexity. With the withdrawal of the specific AI Liability Directive, this revised regime becomes the main harmonized liability framework for AI-caused damage in Europe. For product liability insurance, this extension broadens the perimeter of exposure to software publishers and AI providers, whose activity was until then harder to attach to the product regime.
Damage caused by a defect in AI software clearly falls under the revised Product Liability Directive of October 23, 2024, without the victim having to prove fault.
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