Meta Platforms, in unison with major companies like Spotify and Prada, has expressed alarm to the European Union regarding its existing tech rules. All the firms caution that the current directives might hinder Europe's potential to harness artificial intelligence (AI) effectively. The perspective was shared in a public letter endorsed by more than twenty companies, pointing out worries over the EU's regulatory measures.
Potential Economic Ramifications
As the Wall Street Journal reports, the letter stresses the possible economic fallout from the EU's policy stance on AI. The correspondence predicts that if AI Act regulations aren't approached properly, Europe's GDP could drop by as much as 10%. Signatories assert that the EU's existing strategy may obstruct progress and competitiveness, leaving Europe lagging behind other global areas in AI expansion.
The group, featuring key players such as Sweden's Ericsson, Germany's SAP, and Thyssenkrupp, calls on the EU to unify its regulations. They promote a contemporary interpretation of data protection laws to ensure Europe remains at the forefront of AI developments. Additionally, they reference insights from a report by former European Central Bank head Mario Draghi, which highlights over-regulation as an obstacle to industrial progress in the EU.
Delay of AI Product Launches
Recent moves by prominent tech firms like Meta and Apple demonstrate the practical effects of these regulatory obstacles. Meta has postponed the launch of a new multimodal AI model in Europe, citing regulatory unpredictability. Similarly, Apple has delayed the rollout of its AI system, Apple Intelligence, for European iPhone users due to apprehensions regarding a new digital competition law potentially affecting product functionality and data protection.
Adding to regulatory layers, the Irish Data Protection Commission (DPC) has altered its approach to privacy issues related to AI. Rather than serving as the primary GDPR authority, it now defers these issues to a pan-European committee. The adjustment has introduced ambiguity in how GDPR is interpreted concerning AI technologies.
Tech companies have voiced concerns about the AI Act. Some companies and organizations wanted more support for the open-source development of various AI models. They sent a paper to EU policymakers with their suggestions, including GitHub, Hugging Face, and Creative Commons.
In June last year, over 150 businesses signed an open letter raising concerns the act could stifle industry. 150 executives from companies like Renault, Heineken, Airbus, and Siemens signed an open letter urging the EU to rethink its plans over the AI Act. They claimed that the law is too strict and disproportionate, and could stifle AI innovation and drive AI providers away from the European market.
