The European Union is facing mounting pressure from top industry leaders and tech executives, who are calling for a two-year delay of the upcoming AI Act. They argue that the strict and vague regulations could stifle innovation and give an edge to well-funded American tech giants.

🔹 Business Leaders Sound the Alarm

A group of 44 CEOs from major European corporations – including Airbus, BNP Paribas, Carrefour, and Philips – sent a letter to European Commission President Ursula von der Leyen. In it, they warn that the current version of the legislation could harm Europe's competitiveness in the field of artificial intelligence.

“Overly complex and ambiguous rules could discourage investors and prevent companies from deploying AI at the scale demanded by global competition,” the letter states. The CEOs are urging a two-year pause to allow for simplification and refinement of the rules.

🔹 A Fragile Compromise: Softened Draft and Code of Practice

In response, Brussels is revising the AI Act, which includes a proposed “code of practice” — a framework to guide companies on how to properly implement advanced AI models such as GPT-4, Gemini, and Llama.

Originally scheduled for release in May, the code is now expected to be published before the law comes into effect in August. EU Commissioner for Technology Henna Virkkunen stated that the aim is to especially support small and medium-sized businesses in complying with the new legislation.

Although the AI Act formally takes effect in August 2024, several key provisions will not become active until the end of the year or later. Officials within the European Commission are already exploring ways to phase in the law in multiple stages.

Startups are raising red flags as well. Over 30 EU startup founders sent a separate letter this week, calling the legislation a “ticking time bomb.” They fear that unclear rules for general-purpose AI models could lead to a patchwork of national regulations, giving an advantage to American firms with deeper pockets.

Particular criticism is aimed at requirements around liability for AI-generated content and intellectual property rights. If smaller companies are held to the same standards as tech giants like Google and Microsoft, their growth could be severely hampered.

🔹 Commission Reassures: Safety and Clarity Are Still Key

The European Commission has responded by affirming its commitment to the core goals of the AI Act — introducing harmonized, risk-based rules and ensuring the safety of AI systems on the European market. At the same time, the Commission acknowledged its willingness to adapt digital regulations and consider all available options to ease implementation burdens.




#AI , #Artificiallnteligence , #Eu , #INNOVATION , #worldnews

Stay one step ahead – follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.“