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The updated EU product liability framework extends liability to software and AI, allowing injured people to seek compensation when defective AI systems cause harm. National law can no longer limit liability with financial ceilings, and courts can presume defectiveness in certain cases. It applies to products placed on the market after December 9, 2026, which is also the deadline for member states to transpose it. Older products stay under the previous rules.
If you develop and sell AI products to EU customers, you face no-fault product liability for AI-caused harm, and national law cannot cap it. The directive makes it easier for harmed parties to claim that your AI was defective, especially if you fail to provide adequate safety information or updates. Reviewing your indemnification clauses and product insurance coverage is advisable before December 9, 2026, because products placed on the market after that date are covered.
Civil liability for damages caused by defective AI products (no fixed cap)