UK product liability reform – new redress rules for AI systems?

Changes on the horizon: AI to be in scope and hints of a more pro-consumer balance

The UK Law Commission has announced a new project to review the regime governing civil liability for defective products in the UK, currently governed by the Consumer Protection Act 1987 (the UK CPA).

This announcement has been some time in the making. There has been speculation as to the UK’s future direction since Brexit and, in particular, following the wide ranging, pro-consumer overhaul of the EU regime (from which the UK CPA derives) - announced in September 2022 and now embodied in the new EU Product Liability Directive 2024/2853 (see our further analysis here). 

There was a false start in 2023, with the inclusion of the consideration of potential reform in the UK Government’s Product Safety Review Consultation (which we wrote about here), but which was ultimately absent from the subsequent outcome documents and from the resulting Product Regulation and Metrology Act (which entered into force in July 2025 - see here). 

No concrete details are yet available about the direction the Law Commission is likely to recommend, but early indications suggest the review will focus on: 

• emerging technologies (including AI); and 
• potentially, making it easier for consumers to obtain compensation in product liability claims more generally. 

Both of these were, of course, also key objectives for the EU Commission with the revised Product Liability Directive, which resulted (amongst other things) in the inclusion of software as a standalone product within the scope of the Directive and the shifting of the burden of proof in certain cases (via rebuttable presumptions) to help consumers prove defect and/or causation. 

The Law Commission states that the UK product liability regime “has not kept pace” with developments in the range of available products governed by it in the 40 years since the UK CPA was introduced, “particularly in the context of digital technology”. A recent broad-focus Law Commission Discussion Paper confirmed that its pending product liability project would consider AI, noting in particular its views that: 

• the current regime has the potential for “liability gaps” 
• it is doubtful that the current UK CPA applies to software or that a producer of an AI system solely in the form of software could currently be liable; 
• duties owed by entities with potential liability in the modern (and complex) AI supply chain are “presently unclear”.  

The Law Commission also expressed concerns that the existing regime is “failing” to strike the objective of balancing harm prevention with support for business and innovation, citing reports that “in practice, it has proven difficult for persons to bring successful claims under the current product liability regime”. 

Work on the Law Commission’s review project is expected to commence this year, with the immediate next step being to agree terms of reference with the UK Government.  Ministers have indicated that they expect an initial report from the Law Commission to be published at some point in 2026, suggesting that the initial scoping and information-gathering process could move fast. 

The Law Commission encourages early engagement from stakeholders with views about the project’s focus or who wish to discuss issues with the current liability regime. A consultation paper will also be published once proposals for reform are formulated.