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At the time of writing, the AILD has not been officially withdrawn but the European Commission will formally notify the European Parliament and the Council of the European Union of its intention to withdraw the proposal and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Although the AILD has not yet been officially withdrawn and could theoretically still be revived, political opposition to the proposal now means that its future is uncertain.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.

Photo of Louise Freeman Louise Freeman

Louise Freeman focuses on complex commercial disputes, and co-chairs the firm’s Commercial Litigation Practice Group. Described by Legal 500 as “one of London’s most effective partners,” Ms. Freeman helps clients to navigate challenging situations in a range of industries, including financial markets, technology…

Louise Freeman focuses on complex commercial disputes, and co-chairs the firm’s Commercial Litigation Practice Group. Described by Legal 500 as “one of London’s most effective partners,” Ms. Freeman helps clients to navigate challenging situations in a range of industries, including financial markets, technology and life sciences. Most of her cases involve multiple parties and jurisdictions, where her strategic, dynamic advice is invaluable.

Photo of Lisa Peets Lisa Peets

Lisa Peets leads the intellectual property and technology and media groups in the firm’s London office. Ms. Peets divides her time between London and Brussels, and her practice embraces legislative advocacy, trade and IP enforcement. In this context, she has worked closely with…

Lisa Peets leads the intellectual property and technology and media groups in the firm’s London office. Ms. Peets divides her time between London and Brussels, and her practice embraces legislative advocacy, trade and IP enforcement. In this context, she has worked closely with leading multinationals in a number of sectors, including many of the world’s best-known software and hardware companies.

On behalf of her clients, Ms. Peets has been actively engaged in a wide range of law reform efforts in Europe, on multilateral, regional and national levels. This includes advocacy on EU and national initiatives relating to e-commerce, copyright, patents, data protection, technology standards, compulsory licensing, IPR enforcement and emerging technologies. Ms. Peets also counsels clients on trade related matters, including EU export controls and sanctions rules and WTO compliance.

In the IP enforcement space, Ms. Peets coordinates a team of lawyers and Internet investigators who direct civil and criminal enforcement actions in countries throughout Europe and who conduct global notice and takedown programs to combat Internet piracy.

Ms. Peets is a member of the European Commission’s Expert Group on reform of the IP Enforcement Directive.