Europe Won't Weaken AI Liability Rules Despite Trump Pressure

EU Rejects Claims of US Influence on Tech Regulation Changes

The European Union has refuted assertions that its recent decisions to scale back certain proposed tech regulations, specifically the abandonment of the AI Liability Directive, were influenced by pressure from the Trump administration.

This directive, a draft law from 2022, sought to streamline the process for consumers seeking legal recourse for damages resulting from AI-powered products and services.

Focus on Competitiveness, Not Deregulation

Henna Virkkunen, the EU’s digital chief, stated in a recent interview with the Financial Times that the decision to discard the AI liability proposal stems from a desire to enhance the EU’s competitive standing.

The focus will be on reducing administrative burdens and simplifying procedures, according to Virkkunen.

Streamlining AI Reporting Requirements

Furthermore, an upcoming code of practice related to AI, linked to the EU’s AI Act, will restrict reporting obligations to those already outlined in existing AI regulations.

This aims to further reduce bureaucratic hurdles for businesses.

US Calls for Collaboration on AI

These developments follow a speech by U.S. Vice President JD Vance at the Paris AI Action Summit on Tuesday.

Vance urged European lawmakers to reconsider their approach to technology regulation and collaborate with the US in capitalizing on the “AI opportunity.”

EU's 2025 Work Program and Regional AI Development

The European Commission unveiled its 2025 work program the day after Vance’s address, emphasizing a “bolder, simpler, faster” Union.

The program officially confirmed the termination of the AI liability proposal and simultaneously detailed initiatives designed to stimulate AI development and implementation within the region.

Key Takeaways

• The EU denies US pressure influenced its decision to drop the AI Liability Directive.
• The EU aims to boost competitiveness by reducing regulatory burdens.
• Reporting requirements for AI will be aligned with existing rules.
• The US is advocating for a collaborative approach to AI regulation.