The European Commission first published a proposal for an AI Liability Directive (“AILD”) in September 2022 as part of a broader set of initiatives, including proposals for a new Product Liability Directive (“new PLD”) and the EU AI Act (see our blog posts here, here and here).

The AILD was intended to introduce uniform rules for certain aspects of non-contractual civil claims relating to AI, by introducing disclosure requirements and rebuttable presumptions.

However, unlike the new PLD and EU AI Act, which have both been adopted and have entered into force, the AILD has encountered stagnation and resistance during the legislative process.

On January 21, 2025, the AILD appeared to gain renewed momentum when the AILD’s rapporteur, Axel Voss, set out a timetable to adopt the AILD by February 2026. His schedule outlined key dates for consultations, a draft report, amendments, negotiations and voting. In line with the timetable, a six-week stakeholder consultation was launched on February 3, 2025.

However, just a few days later, on February 11, 2025, the European Commission published its 2025 work programme, listing the AILD for withdrawal. “No foreseeable agreement” on the proposal was cited as the reason for withdrawal.

At the time of writing, the AILD has not been officially withdrawn but the European Commission will formally notify the European Parliament and the Council of the European Union of its intention to withdraw the proposal and consult with these institutions about the proposed withdrawal.

In the Council of the European Union, the AILD has been met with strong opposition from a coalition of countries, which might reduce the likelihood that Member State representatives will propose to continue working on the proposal.

In the European Parliament, Voss criticized the plan to withdraw the AILD. However, prominent lawmakers in the European People’s Party (EPP), to which Voss belongs, have also spoken out against the AILD. 

Although the AILD has not yet been officially withdrawn and could theoretically still be revived, political opposition to the proposal now means that its future is uncertain. Covington will continue to monitor these developments and provide relevant updates.

This post was written with the assistance of Pimara Soongswang.

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Louise Freeman Louise Freeman

Louise Freeman represents parties in complex commercial disputes and class actions, and co-chairs the firm’s Commercial Litigation and EMEA Dispute Resolution Practice Groups.

Described by Legal 500 as “one of London’s most effective partners,” Louise helps clients to navigate challenging situations in a…

Louise Freeman represents parties in complex commercial disputes and class actions, and co-chairs the firm’s Commercial Litigation and EMEA Dispute Resolution Practice Groups.

Described by Legal 500 as “one of London’s most effective partners,” Louise helps clients to navigate challenging situations in a range of industries, including technology, life sciences and financial markets. Most of her cases involve multiple parties and jurisdictions, where her strategic, dynamic advice is invaluable. Chambers notes “Louise is tactically and strategically brilliant and has phenomenal management skills on complex litigation,” she is “a class act.”

Louise also represents parties in significant competition law claims, including a number of the leading cases in England.

Louise is a “recognised name for complex class actions” (Legal 500), defending clients targeted in proposed opt-out and opt-in claims, as well as advising clients on multi-jurisdictional class action risks.

Photo of Lisa Peets Lisa Peets

Lisa Peets is co-chair of the firm’s Technology and Communications Regulation Practice Group and a member of the firm’s global Management Committee. Lisa divides her time between London and Brussels, and her practice encompasses regulatory compliance and investigations alongside legislative advocacy. For more…

Lisa Peets is co-chair of the firm’s Technology and Communications Regulation Practice Group and a member of the firm’s global Management Committee. Lisa divides her time between London and Brussels, and her practice encompasses regulatory compliance and investigations alongside legislative advocacy. For more than two decades, she has worked closely with many of the world’s best-known technology companies.

Lisa counsels clients on a range of EU and UK legal frameworks affecting technology providers, including data protection, content moderation, artificial intelligence, platform regulation, copyright, e-commerce and consumer protection, and the rapidly expanding universe of additional rules applicable to technology, data and online services.

Lisa also supports Covington’s disputes team in litigation involving technology providers.

According to Chambers UK (2024 edition), “Lisa provides an excellent service and familiarity with client needs.”

Photo of Marty Hansen Marty Hansen

Martin Hansen has over two decades of experience representing some of the world’s leading innovative companies in the internet, IT, e-commerce, and life sciences sectors on a broad range of regulatory, intellectual property, and competition issues, including related to artificial intelligence. Martin has…

Martin Hansen has over two decades of experience representing some of the world’s leading innovative companies in the internet, IT, e-commerce, and life sciences sectors on a broad range of regulatory, intellectual property, and competition issues, including related to artificial intelligence. Martin has extensive experience in advising clients on matters arising under EU and U.S. law, UK law, the World Trade Organization agreements, and other trade agreements.

Photo of Madelaine Harrington Madelaine Harrington

Madelaine Harrington is an associate in the technology and media group. Her practice covers a wide range of regulatory and policy matters at the cross-section of privacy, content moderation, artificial intelligence, and free expression. Madelaine has deep experience with regulatory investigations, and has…

Madelaine Harrington is an associate in the technology and media group. Her practice covers a wide range of regulatory and policy matters at the cross-section of privacy, content moderation, artificial intelligence, and free expression. Madelaine has deep experience with regulatory investigations, and has counseled multi-national companies on complex cross-jurisdictional fact-gathering exercises and responses to alleged non-compliance. She routinely counsels clients on compliance within the EU regulatory framework, including the General Data Protection Regulation (GDPR), among other EU laws and legislative proposals.

Madelaine’s representative matters include:

coordinating responses to investigations into the handling of personal information under the GDPR,
counseling major technology companies on the use of artificial intelligence, specifically facial recognition technology in public spaces,
advising a major technology company on the legality of hacking defense tactics,
advising a content company on compliance obligations under the DSA, including rules regarding recommender systems.

Madelaine’s work has previously involved representing U.S.-based clients on a wide range of First Amendment issues, including defamation lawsuits, access to courts, and FOIA. She maintains an active pro-bono practice representing journalists with various news-gathering needs.