EU Commission Withdraws AI Liability Directive

The EU Commission has surprisingly withdrawn the proposed AI Liability Directive from consideration. This was announced in the Commission's 2025 work programme, adopted on the 11 February 2025.

The decision to withdraw the proposed Directive reflects the EU's shift towards deregulation and simplification of EU rules, aimed to foster innovation and boost the EU's competitiveness. Indeed, the Commission's 2025 work programme dropped several other legislative proposals, including the long awaited ePrivacy Regulation which was meant to replace the current ePrivacy Directive.

This shift in EU agenda was emphasised by EU Commission President Ursula von der Leyen at the AI Action Summit held in Paris on the 10-11 February, who remarked a push to “cut red tape”. Notably, US Vice President JD Vance strongly criticised the EU's strict tech regulations in his speech at the AI Action Summit, specifically referring to the Digital Services Act and the General Data Protection