Liability for harm caused by defective software or AI will rest mainly with the manufacturer, regardless of fault. The new EU Product Liability Directive (2024/2853) expressly treats software and AI systems as products. It covers products placed on the market from 9 December 2026, the deadline for Member States to transpose it. An injured person can claim for death or personal injury (including psychological health), damage to property, and destruction or corruption of data not used for professional purposes. A missing security update can also make a product defective. A business that only uses AI remains liable under general rules, such as its contracts or national civil law.
Software and AI are now products
Directive (EU) 2024/2853 replaces rules that were almost 40 years old. It treats software as a product, whether installed on a device or accessed through the cloud or as a service (SaaS), and this includes AI systems. A software developer or AI provider therefore becomes a manufacturer, liable for defects regardless of fault.
Free and open-source software developed or supplied outside a commercial activity is excluded.
Which damage, and for whom
A natural person can claim for death, personal injury including medically recognised harm to psychological health, damage to or destruction of property, and destruction or corruption of data. Compensation does not cover property and data used exclusively for professional purposes, nor the defective product itself.
A product is defective if it does not provide the safety that can reasonably be expected. This assessment also considers the system's ability to keep learning and whether the manufacturer supplied the necessary security updates. Courts can order the manufacturer to disclose evidence. For technically complex products such as AI, they can presume the defect or the causal link.
From when, and the time limits
Member States must transpose the Directive by 9 December 2026, and the new rules cover products placed on the market from that date. Older products remain under the previous rules. As of 28 October 2026, the Czech Republic had published a draft transposition act but had not adopted it.
A claim must be brought within 3 years of the day the injured person became aware of the damage, the defect and the liable party. It expires at the latest 10 years after the product was placed on the market, or 25 years for latent personal injury.
What it means for businesses
Businesses that develop or sell software should review their supplier and customer contracts, set up a security-update process and keep the documentation they may later need as evidence.
A business that only uses AI is not a manufacturer under the Directive unless it substantially modifies the AI. It can still be liable to its customers for harm under its contracts or under general civil law. The European Commission withdrew its proposal for a separate AI Liability Directive, so these general rules continue to apply.
A lawyer can assess your place in the supply chain and adjust your contracts and terms of use. Lawyers' services are paid; only submitting a standard request through LawBridge is free.
Frequently asked questions
Yes. In assessing a defect, the Directive also considers the system's ability to learn after it was placed on the market. A manufacturer that keeps control over the system, for example through updates, is also liable for defects that arise later.
No. The Directive applies to products placed on the market from 9 December 2026. Products placed earlier remain under the previous product liability rules.
The Directive protects natural persons and does not cover property and data used exclusively for professional purposes. Disputes between companies are governed by their contracts and general rules, which is why liability clauses in contracts matter.
If you develop, sell or integrate software or AI into your own products, having your contracts and terms reviewed is worthwhile. Lawyers' services are paid. Through LawBridge you can submit a standard request free of charge.
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