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Drafting AI Contracts for EU Compliance: Allocating Risk, Liability and Intellectual Property for High-Risk Systems under the EU AI Act, AI Liability and Product Liability Directives

Published on: 25 January 2024

Published by a LexisNexis EU Law expert
Legal News
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Article summary

The anticipated AI Act is in draft but already shaping contracts concerning the development and licensing of AI systems.

It is now beyond doubt: the European Union’s artificial intelligence law, the EU AI Act, is on its way. Following news of a political deal in trilogue talks on 8 December 2023, the Act is expected to be adopted before the close of the current legislative term and the European elections in June 2024. While the precise provisions have not yet been finalised, drafts from the European Commission and the Council, together with details of the compromise shared by parliamentary figures, have surfaced—and the need to act is already pressing. The EU’s aim is to roll out fresh regulatory benchmarks for deploying AI systems, carefully balancing the benefits and risks of using AI across different fields. Alongside the broader EU AI Act, a dedicated AI Liability Directive is planned. Together, these two initiatives are set to reshape the legal landscape for manufacturers, retailers and users of AI systems. In practice, parties are already reconsidering development and licensing arrangements in anticipation of the regime, as the emerging framework begins to influence contracting behaviour...

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