European lawmakers have moved a step closer to new rules that would make technology companies more legally accountable for harms linked to artificial intelligence systems. The European Parliament's legal affairs committee approved a proposal aimed at tightening liability standards for AI-driven products and services.

The legislation would seek to hold firms responsible when algorithmic systems cause damage, including disputes tied to biased content moderation decisions. Supporters say the draft is meant to close legal gaps created by fast-moving AI tools that can shape speech, access, and outcomes at scale.

The vote comes as governments and regulators around the world face pressure to address the risks of automated decision-making. Critics from the tech sector argue that stronger liability rules could slow innovation and create uncertainty for companies building or deploying AI systems.

The measure still faces additional hurdles before it can become law, but the committee’s approval signals growing momentum in Brussels for firmer oversight of AI. The outcome could influence how platforms design moderation systems, assess risk, and handle accountability in the event of harm.