Business News Report
June 30, 2023

Business Leaders Warn AI Regulation Could Harm Europe’s Tech Potential

In Brief

Business leaders issue a warning regarding the EU AI Act on Europe’s technological potential.

The draft AI rules could impose heavy regulations and compliance costs on companies, hindering innovation in the field.

Concerns are raised about the possibility of highly innovative companies relocating their operations outside of Europe and investors withdrawing their support for AI development in the region.

The open letter suggests that regulators in Brussels should adopt a law focused on broad principles and a risk-based approach rather than solely concentrating on generative AI and strict compliance measures.

Business Leaders Warn AI Regulation Could Harm Europe’s Tech Potential

In a letter to EU policymakers, over 150 business leaders from various sectors, including Meta, Renault, Siemens, Heineken, and Airbus, expressed concerns about the draft AI regulation that the EU agreed on this month.

They argued that the proposed rules would undermine Europe’s technological sovereignty and competitiveness while not addressing the potential issues that AI might pose. The letter urged the EU to reconsider its approach and embrace AI to regain its edge in innovation.

It also cautioned that the suggested EU regulations would result in stringent oversight of technologies like generative AI, imposing significant compliance expenses and disproportionate liability risks on companies developing such systems.

“In our assessment, the draft legislation would jeopardise Europe’s competitiveness and technological sovereignty without effectively tackling the challenges we are and will be facing,”

the letter addressed the European Commission. 

The letter further stressed that Europe must take action and proposed that regulators in Brussels develop a law focused on broad principles and a risk-based approach instead of solely focusing on generative AI and strict compliance measures.

Overregulation could prompt innovative companies to relocate their operations overseas and cause investors to withdraw their financial support from the advancement of AI in Europe. OpenAI’s CEO, Sam Altman, already mentioned that the company might leave Europe if the rules are enforced. He suggested changing the definition of general-purpose AI systems and criticized the EU AI Act.

There is also growing concern about the possible dangers of the rapidly evolving technology, with calls for regulation increasing since November when OpenAI released ChatGPT.

Various open letters were published advocating for AI regulation, halting the training of highly-capable AI systems, and expressing concerns about the potential danger of AI leading to human extinction. These letters were signed by influential figures like Elon Musk and Sam Altman, executives from Microsoft and Google, as well as Geoffrey Hinton and Yoshua Bengio, recognized as prominent pioneers in AI.

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About The Author

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

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Agne Cimerman
Agne Cimerman

Agne is a journalist who covers the latest trends and developments in the metaverse, AI, and Web3 industries for the Metaverse Post. Her passion for storytelling has led her to conduct numerous interviews with experts in these fields, always seeking to uncover exciting and engaging stories. Agne holds a Bachelor’s degree in literature and has an extensive background in writing about a wide range of topics including travel, art, and culture. She has also volunteered as an editor for the animal rights organization, where she helped raise awareness about animal welfare issues. Contact her on [email protected].

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