Endre Varady

Adapting Liability to the AI Age Under the current rules, based on the old Product Liability Directive 85/374/EEC, manufacturers can be held strictly liable – regardless of fault – for damage caused by defective products. However, these rules were not designed for complex, data-driven, and continuously evolving systems.

While these developments bring efficiency, they also carry legal and ethical minefields. From discrimination risks to workplace rights and handling of sensitive personal data, these systems can cause serious issues if not managed properly. The recently adopted EU AI Act classifies many AI use cases in HR as high-risk, triggering strict compliance duties. Some tools, such as emotion detection in interviews, could even fall into prohibited categories.