AI-related opportunities and risks for consumers' rights in the evolving EU legal framework

This chapter examines the impact of artificial intelligence (AI) on consumer rights within the EU Digital Single Market, against the backdrop of the recently adopted AI Act and pre-existing legal instruments. While AI technologies can enhance consumer protection – by fostering informed decision-making, increasing contract transparency, and enabling efficient dispute resolution – they also raise significant risks. These include algorithmic discrimination, opaque decision-making, manipulative personalization, and privacy infringements, especially in B2C relationships. The study highlights critical gaps in current EU consumer, data protection, and anti-discrimination law when applied to AI-driven practices. It assesses how the AI Act and complementary EU legislation attempt to mitigate these risks through provisions on risk management, transparency, human oversight, and fundamental rights impact assessments. However, the chapter argues that key challenges remain, particularly in enforcing transparency and fairness in high-risk AI systems. Ultimately, the chapter calls for a balanced approach that reinforces legal safeguards while enabling innovation, noting that consumer trust in AI will be pivotal for its sustainable integration into the EU market.