EU Updates Its Product Liability Regime: Important Considerations For Providers Of AI Systems And Software

The European Union has significantly overhauled its product liability regime with a new directive concerning liability for defective products (Product Liability Directive). EU member states have until December 9, 2026, to transpose the Product Liability Directive into local law. From that date, it will apply to all products placed on the market or put into service.

The new regime will have a sizable impact on the risk profile of companies involved at any stage of the product manufacturing supply chain, including, crucially, software developers and providers of AI systems. It is part of the broader push to regulate AI alongside the EU AI Act — which entered into force on August 1, 2024 (see our full series of AI insights here) — and now offers the primary means for recourse for consumers that have suffered harm due to AI systems after the Commission shelved the EU AI Liability Directive.