BRUSSELS  – The Business Software Alliance and a coalition of leading industry associations are calling on European Union policymakers to withdraw the proposed Artificial Intelligence Liability Directive (AILD), emphasizing that this would align with the EU's goals of regulatory simplification, foster innovation, and enhance competitiveness.

“The AILD would add unnecessary legal complexity and uncertainty to an already intricate and novel legal framework impacting AI in Europe,” the coalition said. “Its added value is, at best, unclear, given the existing legal frameworks on liability and consumer protection.”

The Product Liability Directive (PLD), which already extends liability rules to AI and software, should be implemented and assessed before introducing additional frameworks. AI is also subject to the AI Act, GDPR, Digital Services Act, Data Act, and Cyber Resilience Act, many of which have yet to take effect, and their interactions, overlaps, and combined impact remain to be assessed and understood. Moreover, adding further regulation risks disrupting well-established contractual liability practices, which allow businesses the flexibility to tailor liability agreements to their specific needs.

The Draghi Report on Competitiveness highlights the need for a clear, streamlined regulatory framework to support AI development in Europe. Withdrawing the AILD would align with the EU’s commitment to regulatory simplification and provide a more stable legal environment for AI innovation.

The full statement can be read here.