EU Tech Giants Lobby EU for Light-Touch AI Regulation to Avoid Billions in Fines
By Martin Coulter
The world's largest technology companies are making a final push to convince the European Union to adopt a lenient approach to regulating artificial intelligence. They are concerned about potential multi-billion dollar fines that could be imposed if regulations are too strict.
In May, EU lawmakers approved the AI Act, the first comprehensive set of rules governing AI technology. However, the specifics of how rules regarding "general purpose" AI systems will be enforced are still uncertain until the accompanying codes of practice are finalized.
Companies, academics, and other stakeholders have been invited to contribute to the drafting of the code of practice. The code will not be legally binding, but it will serve as a checklist for firms to demonstrate compliance.
Concerns have been raised about issues such as data scraping and copyright infringement. Companies will be required to provide detailed summaries of the data used to train their AI models, raising questions about the use of copyrighted material without permission.
Business leaders have differing opinions on the level of detail that should be included in these summaries, with some advocating for transparency to protect copyright holders' rights.
There is also debate about the balance between tech regulation and innovation, with some criticizing the EU for prioritizing regulation over fostering innovation.
Once the code of practice is published, tech companies will have until August 2025 to ensure compliance. Non-profit organizations have also applied to contribute to the drafting process, emphasizing the importance of transparency in AI development.
Overall, the AI Act represents a significant step towards regulating AI technology in the EU. Companies operating in this space will need to carefully navigate the evolving regulatory landscape to avoid potential legal challenges and fines.