Europe denies dropping AI liability rules under pressure from Trump

The European Union has denied any influence from the Trump administration in its decision to scrap the AI Liability Directive, a draft law aimed at allowing consumers to sue over harms caused by AI-enabled products and services.

Henna Virkkunen, the EU’s digital chief, explained to the Financial Times that the focus is now on enhancing competitiveness by reducing bureaucracy rather than responding to external pressure.

The EU’s upcoming code of practice on AI, part of the AI Act, will streamline reporting requirements to align with existing rules.

During the Paris AI Action Summit, U.S. vice president JD Vance urged European legislators to embrace the “AI opportunity” instead of overregulating technology.

Following Vance’s speech, the Commission unveiled its 2025 work program, emphasizing a more efficient and progressive Union. The program includes plans to promote regional AI development and adoption while confirming the abandonment of the AI liability proposal.