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Does the EU Need an Artificial Intelligence Liability Directive? Insights from the Economics of Federalism

Shu Li & Michaël Faure

Economic Review / Revue Economique2025https://doi.org/10.3917/reco.761.0115article
ABDC B
Weight
0.41

Abstract

Confronted with increasing risks of harm created by various AI systems, the EU authorities have proposed an AI liability directive (AILD) with an intention to address the procedural obstacles suffered by a claimant in a non-contractual fault-based claim and probably in the future, to harmonise the liability and damage rules for the harm caused by AI systems.After vigorous debate, the Commission decided to withdraw the proposal in February 2025.This article provides an explanation of this withdrawal by arguing that the idea of establishing liability rules for AI-related harm at the European level cannot be well justified by the insights from the economics of federalism.Compared with the centralised approach, the already existing decentralised pattern may better satisfy the different local preferences.L'UE a-t-elle besoin d'une directive sur la responsabilit en matire d'intelligence artificielle ?Perspectives de l'conomie du fdralisme Confronte des risques croissants de dommages causs par divers systmes d'intelligence artificielle, la Commission europenne a propos une directive sur la responsabilit en matire d'intelligence artificielle (AILD) dans l'intention de remdier aux obstacles procduraux rencontrs par un demandeur dans le cadre d'une actionnon contractuelle fonde sur la faute et, probablement l'avenir, d'harmoniser les rgles en matire de responsabilit et de dommages pour les dommages causs par les systmes d'intelligence artificielle.Aprs un vif dbat, la Commission a dcid de retirer la proposition en fvrier 2025.Cet article propose une explication de ce retrait en soutenant que l'ide d'tablir des rgles de responsabilit pour les dommages lis l'IA au niveau europen ne peut pas tre justifie par les enseignements de l'conomie du fdralisme.Par rapport l'approche centralise,

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https://doi.org/https://doi.org/10.3917/reco.761.0115

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@article{shu2025,
  title        = {{Does the EU Need an Artificial Intelligence Liability Directive? Insights from the Economics of Federalism}},
  author       = {Shu Li & Michaël Faure},
  journal      = {Economic Review / Revue Economique},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.3917/reco.761.0115},
}

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Does the EU Need an Artificial Intelligence Liability Directive? Insights from the Economics of Federalism

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Evidence weight

0.41

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.25 × 0.4 = 0.10
M · momentum0.55 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.