Tech industry representatives advocate for the EU to provide AI with a fair opportunity


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  • DigitalEurope warns EU of startup exodus due to strict AI rules; only 8% of firms use AI, falling short of the 75% target.
  • Digital groups back limiting AI rules for foundation models, pushing for transparency standards to foster innovation.
  • DigitalEurope voices concern over AI Act’s broad scope potentially conflicting with healthcare rules, urges targeted regulations to avoid complexity.

DigitalEurope, a prominent technology industry body, has called on the European Union (EU) to adopt a measured approach in regulating artificial intelligence (AI) foundation models. As the EU enters the final stages of negotiations on pivotal laws governing the sector, the organization, along with 32 digital associations, emphasized the importance of avoiding over-regulation that could potentially drive startups away from the region. The call comes in the wake of concerns about Europe’s lagging adoption of AI and its impact on the continent’s competitiveness.

Industry appeal for a balanced regulatory framework

DigitalEurope, representing a consortium of 32 digital associations, has issued an open letter urging the European Union to exercise caution in crafting regulations for AI foundation models. The letter emphasizes the critical need for a regulatory environment that encourages innovation and growth rather than stifling it with excessive red tape. The tech industry body highlights the significant gap between the current adoption of AI in Europe and the ambitious target set by the European Commission – a mere 8% of companies currently use AI, compared to the goal of 75% by 2030.

Warning on potential exodus of startups

The letter underscores the pivotal role of AI in various sectors, including green tech, health, manufacturing, and energy. DigitalEurope contends that the competitiveness and financial stability of the continent rely on the ability of companies to leverage AI in these crucial areas. Expressing concerns about the departure of startups from the region, the letter calls for a regulatory framework that does not “regulate them out of existence before they get a chance to scale, or force them to leave.”

Recommendations and support for transparent standards

As part of a series of recommendations, the industry representatives have thrown their support behind a proposal from France, Germany, and Italy. The proposal seeks to limit the scope of AI rules for foundation models to specific transparency standards. DigitalEurope argues that the upcoming AI Act should not be an exhaustive regulatory measure for every new technology. Instead, it advocates for an approach that concentrates on high-risk uses, avoiding unnecessary constraints on innovation.

Concerns over potential overlaps with other sectors

The industry body also raises concerns about the broad scope of the AI Act, suggesting that it could lead to overlaps with existing rules in other sectors, particularly in healthcare. DigitalEurope stresses the importance of a focused regulatory approach, emphasizing the need to avoid unnecessary complexity and potential conflicts with existing regulations.

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In the realm of European AI regulation, DigitalEurope’s call for a pragmatic and balanced approach underscores the industry’s plea for regulations that foster innovation rather than impede it. With only 3% of the world’s “AI unicorns” originating from the EU, the urgency to create an environment conducive to AI development is clear. As the final negotiations on the AI Act unfold, the tech industry’s voice is crucial in shaping regulations that strike a harmonious balance between oversight and innovation.

DigitalEurope’s open letter, supported by a coalition of digital associations, amplifies the industry’s call for a regulatory environment that supports the growth of AI technologies. The recommendations put forth, including the endorsement of specific transparency standards for foundation models, reflect a collective effort to guide the EU towards a balanced and pragmatic approach. As Europe navigates the final stages of AI regulation, the global tech landscape watches closely, recognizing the potential impact on innovation, competitiveness, and the future of AI in the region.

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Derrick Clinton

Derrick is a freelance writer with an interest in blockchain and cryptocurrency. He works mostly on crypto projects' problems and solutions, offering a market outlook for investments. He applies his analytical talents to theses.

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