Top European CEOs propose to delay the EU AI Law to maintain global competitiveness and avoid complicating investment in cryptocurrency development in the region.
MAIN CONTENT
More than 100 European CEOs have proposed delaying the EU AI Law for 2 years due to complex regulations hindering development.
Concerns that the current law prevents small businesses and startups from competing with large tech corporations from the USA and China.
The EU Commission is committed to simplifying the law, supporting businesses in compliance while ensuring the safety of AI systems.
Why do European CEOs propose delaying the EU AI Law for 2 years?
CEOs of major corporations such as Airbus, BNP Paribas, Carrefour, and Philips have urged European Commission President Ursula von der Leyen to temporarily suspend the enforcement of the AI Law, emphasizing that the current regulations are too complex and overlapping, which could reduce investment in AI and slow down the development of technology in Europe.
The letter argues that the unclear regulatory framework threatens the development of large businesses as well as the widespread application of AI across various industries, causing Europe to lose its competitive edge in the global market.
Current complex regulations 'put Europe's AI ambitions in jeopardy, affecting not only leading businesses but also undermining the ability to deploy large-scale AI across the entire economy.'
Excerpt from the letter of proposal from European CEOs, July 2024
What aspects of the EU AI Law concern businesses?
The EU AI Law has a long implementation timeline, with many important provisions only coming into effect from the end of 2024 onwards, making it difficult for businesses to plan legally and invest. According to expert Patrick Van Eecke, this is a typical example of 'complex regulation' that does not ensure the necessary legal clarity for the industry.
Many small businesses and startups warn that the current law may lead to fragmentation as each EU member state applies it differently, creating an advantage for financially strong tech corporations in the USA over European companies.
How does it affect small companies and startups?
According to a recent open letter from over 30 startup CEOs in the EU, the current AI Law is like a 'time bomb' making founders and investors concerned due to the lack of clarity in regulations for multi-purpose AI models. This could make domestic companies struggle to compete with US tech giants benefiting from less binding legal processes.
How does the EU Commission respond to these recommendations?
EU Technology Commissioner, Ms. Henna Virkkunen, stated that the Commission is committed to publishing a code of practice to assist businesses in complying with the AI Law before it officially takes effect in August 2024. This code will be adjusted to reduce the legal burden on small and medium enterprises.
The Commission is also discussing with member states the possibility of simplifying the law's implementation process to increase feasibility and effectiveness for businesses.
"We will announce the code of practice before the AI Law officially takes effect, to support the industry and SMEs in complying with the regulations."
Henna Virkkunen, EU Technology Commissioner, June 2024
Analysis of global competition between the EU, USA, and China in the field of AI
The complex AI law may cause European companies to miss opportunities to boost investment and development in the field of cryptocurrency and AI compared to major competitors in the USA and China, where these countries adopt more flexible policies. Delaying will help the EU adjust regulations accordingly, enhance competitiveness, and attract international investment.
EU AI Policy USA China Implementation Timeline Law Being implemented from 8/2024 through a complex roadmap Flexible policy, quick support for AI businesses Strong policy, heavy investment, and strict control Regulation level Complex, detailed, many legal constraints Simple, prioritizing innovation and rapid development Strong policy, focusing on control and development of AI according to state plans Impact on small businesses May create restrictions due to lack of clarity and complex application Support for startups and innovation Prioritizes large enterprises, state-controlled
Frequently Asked Questions
What is the EU AI Law?
The EU AI Law is a legal framework governing safety standards and responsibilities in the development of cryptocurrency and artificial intelligence models in the European market.
Why do European CEOs propose delaying the law?
They argue that the current law is too complex and overlapping, reducing investment capability, AI development, and disadvantaging small businesses compared to global competitors.
What response has the EU Commission given regarding the proposal to delay the law?
The Commission is committed to supporting businesses with a simplified code of practice, while also considering adjusting the law's implementation roadmap to increase feasibility.
How will the AI Law affect small businesses and startups?
Lack of clarity in the law may cause small businesses to struggle with compliance, thereby losing competitive advantages compared to large corporations with strong resources.
When does the EU AI Law officially take effect?
The law is set to take effect from August 2024, but many important regulations will be applied by the end of the year or in subsequent years.
Source: https://tintucbitcoin.com/ceo-cong-nghe-keu-goi-eu-dung-dao-luat-ai/
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