The EU Regulatory approach(es) to AI liability, and its Application to the financial services market

The paper starts by assessing the fit of the existing European liability regime(s) with the constantly evolving AI landscape, by identifying the normative foundations on which a liability regime for such technology should be built on. It then addresses the proposed additions and revisions to the legislation, focusing on how they seek to govern AI systems, with a major focus on their implications on highly-regulated complex systems such as financial markets. Finally, it considers potential additional measures that could continue to strike a balance between the interests of all parties, namely by seeking to reduce the inherent risks that accompany the use of AI and to leverage its major benefits for our society and economy.