AI Governance and Liability

What is AI governance? AI governance refers to the set of principles, rules, guidelines, and oversight mechanisms that guide the use and development of AI.

The EU AI Act, which has been in effect since 2024, is an example of evolving AI governance and regulations.

Key features of this legislation include:

• Risk-based approach: AI is classified from low to unacceptable risk.
• High standards of transparency, security, and oversight for “high-risk AI.”
• Ban on certain AI applications (such as facial recognition in public spaces under certain circumstances).
• Oversight and sanctions for violations.

For an overview of the application of the EU AI Act, please refer to the article on our website that provides more information.

Proposal

In addition, the EC also proposed an AI Liability Directive, which was intended to harmonize liability for damages caused by AI and simplify the burden of proof for victims. However, the proposal was withdrawn in February 2025. This means that any damage caused by the use of AI systems will have to be dealt with under national law, with all the attendant evidentiary problems. It will be very difficult to pinpoint where the causal chain begins and ends, and the difficulties will certainly increase as the difference in leverage between the individual victim and the listed AI behemoth grows.

But perhaps an AI application will emerge that can solve this evidentiary problem!

Contact

Until then, if you have any questions about AI, privacy, or IT issues, please contact the professionals at Fruytier Lawyers in Business! You can reach us by  email, phone or fill out the contact form for a no-obligation initial consultation. We are happy to think with you.