Despite its huge potential, GenAI’s rapid development and deployment have outpaced the evolution of legal and ethical frameworks. GenAI models can generate human-like content, including text, images, and codes, but as the use of these tools in different contexts increases, commitment to the responsible use of GenAI becomes increasingly important, given its integration into our professional and personal lives.
At CRIF, we are committed to developing a framework for the responsible use of AI that addresses both legal and ethical challenges, and is rooted in integrity, transparency, fairness, and a human-centric innovation ecosystem.
A Proposal by the European Commission to Harmonize National Rules
Determining liability for harm caused by GenAI systems is one of the most complex legal questions facing policymakers today. Both the European Union and United States have proposed frameworks to address accountability, but gaps remain in assigning clear responsibility.
Traditional liability models that assign fault to a human actor do not readily apply to outputs generated autonomously by machines. If a chatbot provides harmful medical advice, or if an AI system generates defamatory or discriminatory content, it is unclear whether responsibility lies with the developer, the deployer, or the user.
The EU AI Act attempts to address this with obligations for risk assessment, human oversight, incident logging, and post-market monitoring. While these measures increase accountability, they fall short of defining a clear liability regime, especially for general-purpose models used in unpredictable ways.
Alongside the AI Act, the European Commission had proposed the AI Liability Directive, aimed at harmonizing national rules on non-contractual civil liability for harm caused by AI systems. The Directive sought to modernize the EU’s liability framework by introducing mechanisms that presume a link between harm and the use of high-risk AI systems when providers fail to meet their obligations, thereby easing the burden of proof for victims. However, the proposal faced resistance and was ultimately withdrawn from legislative consideration in early 2025.
The absence of binding EU-wide rules on AI liability leaves a critical gap in the legal framework, particularly in cases involving autonomous and opaque systems, where traditional fault-based liability models struggle to assign responsibility. As a result, individuals harmed by AI-generated outputs may continue to face significant procedural and evidentiary hurdles when seeking redress.
Current United States Position on an AI Liability Directive
The United States does not have a federal AI liability directive; instead, legislation encourages a sector-specific approach, focused on promoting AI development. Regarding security concerns, policymakers often rely on voluntary industry commitments.
In the United States, Section 230 of the Communications Decency Act is also relevant in this context, granting online platforms and service providers immunity from liability for third-party content. Whether this protection applies to AI-generated content remains legally unclear, but it raises concerns that harmful outputs might go unpunished. Some legal experts have proposed a strict liability framework for high-risk applications, meaning providers would be liable regardless of intent or negligence. Others argue for mandatory AI insurance, or public registries for high-impact models.
Countries around the world are adopting different strategies to regulate AI. The EU has taken a comprehensive legal approach, while others follow more decentralized or flexible models. These divergent strategies highlight the complexities of AI regulation.
To help bridge the accountability gap, companies should adopt internal AI governance systems that include clear usage policies, real-time monitoring of outputs, and redress mechanisms for when harm occurs.
About CRIF
Established in 1988 in Bologna (Italy), CRIF has a global presence, operating over four continents (Europe, America, Africa and Asia).
Today, CRIF is the leader in Italy for retail credit management and lending support solutions and, thanks to the expertise acquired over more than 30 years of activity in highly competitive markets, it is the leading group in continental Europe in the banking information sector and one of the main operators on an international level for integrated business and commercial information and credit and marketing management services.
For more information, visit https://www.crif.com.
Source: linkedin.com
