EU Denies Scrapping AI Regulation Due to US Pressure
EU Reverses Stance on AI Liability Directive
The European Union has denied that its recent decision to row back on some planned tech regulation, including the scrapping of the AI Liability Directive, was made in response to pressure from the Trump administration to deregulate around AI.
Reasons for Scrapping AI Liability Directive
According to Henna Virkkunen, the EU’s digital chief, the AI liability proposal was being scrapped because the bloc wanted to focus on boosting competitiveness by cutting bureaucracy and red tape. Virkkunen made this statement in an interview with the Financial Times on Friday.
New Approach to AI Regulation
The EU is instead planning to focus on a code of practice on AI, which will limit reporting requirements to what’s included in existing AI rules. This code is attached to the EU’s AI Act, which is expected to shape the bloc’s approach to AI development and deployment.
US Influence on EU Decision-Making
On Tuesday, US Vice President JD Vance urged European legislators to rethink their approach to technology rule-making, urging the bloc to join the US in embracing the "AI opportunity" in a speech at the Paris AI Action Summit. However, the EU has denied that the US administration had any influence on its decision to scrap the AI liability proposal.
EU’s 2025 Work Program
The EU published its 2025 work program the day after Vance’s speech, outlining plans for a "bolder, simpler, faster" Union. The document confirmed the demise of the AI liability proposal while setting out plans aimed at stoking regional AI development and adoption.
Conclusion
The EU’s decision to scrap the AI liability proposal has sparked controversy, with some critics accusing the bloc of caving in to US pressure. However, the EU has denied this, citing its commitment to promoting competitiveness and reducing bureaucracy. The focus on a code of practice on AI is seen as a more measured approach to regulating the technology, which is expected to have far-reaching implications for businesses and consumers alike.
FAQs
Q: Why did the EU scrap the AI liability proposal?
A: The EU claims it was to focus on boosting competitiveness by cutting bureaucracy and red tape.
Q: Is the EU’s decision related to US pressure to deregulate around AI?
A: The EU has denied this, stating that its decision was made independently.
Q: What is the EU’s new approach to AI regulation?
A: The EU is focusing on a code of practice on AI, which will limit reporting requirements to what’s included in existing AI rules.
Q: What is the EU’s 2025 work program?
A: The program outlines plans for a "bolder, simpler, faster" Union, including the demise of the AI liability proposal and plans to promote regional AI development and adoption.

