Dortmund, Germany
CNN
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Dozens of Europe’s top business leaders have opposed the European Union’s proposed law on artificial intelligence, warning it could undermine the EU’s competitiveness and drive investment outflows.
In an open letter sent to EU lawmakers on Friday, executives from companies including Siemens (SIEGY), Carrefour (CRERF), Renault (RNLSY) and Airbus (EADSF) called the world’s first EU AI law “serious.” concerns,” he said. Comprehensive AI rules.
Other prominent signatories include tech industry luminaries such as Meta (FB) chief AI scientist Yann LeCun and British chipmaker ARM founder Hermann Hauser.
In a letter, a group of more than 160 executives said: “In our assessment, the bill does not effectively address the current and future challenges facing Europe, and jeopardizes Europe’s competitiveness and technological sovereignty. It will happen,” he said.
They argue that the draft rules go too far, especially when it comes to regulating generative AI and underlying models, the technology behind popular platforms such as ChatGPT.
Since the generative AI craze began this year, engineers have been working on systems that allow people to use machines to write college papers, take academic exams, and build websites. I have warned you about a potential dark side. Hundreds of top experts warned last month of the risk of AI annihilating humanity, saying mitigating that potential “is a global priority alongside other societal-scale risks such as pandemics and nuclear war.” There should be,” he said.
The EU proposal applies a broad brush to such software “regardless of content”. [its] Innovative companies and investors could be forced out of Europe because they face high compliance costs and “unfair liability risks,” executives said.
“Such regulations could force highly innovative companies to move their activities overseas,” and investors could pull capital out of AI in Europe, the group wrote.
“The result will be a significant productivity gap between the two sides of the Atlantic.”
Officials are urging policymakers to revise the terms of a bill agreed by MEPs earlier this month and currently under negotiation with EU member states.
Valeria Montgheri/Bloomberg/Getty Images
European Parliament building in Strasbourg, France
“European law should be limited to stating broad principles in a risk-based approach in a context where little is known about the actual risks, business models and applications of generative AI,” it said.
Business leaders called for the establishment of a regulatory board of experts to oversee these principles and ensure continuous adaptation to fast-moving technological changes.
The group also pointed to regulatory proposals made in the United States and called for cooperation with US lawmakers. EU lawmakers should strive to “create a level playing field that is legally binding,” executives wrote.
If such measures are not taken and Europe is constrained by regulatory demands, the region’s international standing could be hurt, the group said.
“Similar to the invention of the Internet and the breakthrough of silicon chips, generative AI is the class of technology that will determine performance capabilities and therefore the importance of different regions,” said the report.
As AI becomes more prevalent, tech experts are calling for tougher regulation of AI. In recent months, the United States and China have also launched plans to regulate the technology. Sam Altman, CEO of ChatGPT maker OpenAI, has spent the last few weeks flying around the world to make headlines and call for international regulatory adjustments to AI.
According to the European Parliament, the EU regulation is the world’s “first-ever attempt” to create legally-binding rules that apply to various areas of AI.
Negotiators on the AI law hope to reach an agreement by the end of the year, and the law will become law once the final rules are adopted by the European Parliament and EU member states.
As it stands, the rule would ban AI systems deemed harmful, such as real-time facial recognition systems in public spaces, predictive police tools, and social scoring systems like China’s.
The law also outlines transparency requirements for AI systems. For example, systems such as ChatGPT must disclose that their content is AI-generated and provide safeguards against illegal content generation.
Engagement in prohibited AI conduct can result in hefty fines of up to €40 million ($43 million) or up to 7% of a company’s global annual turnover, whichever is higher .
However, the fines will be “proportional” and take into account the market position of smaller providers, suggesting there may be some leniency for start-ups.
So far, not everyone has opposed the bill. Earlier this month, industry group Digital Europe, whose members include SAP (SAP) and Ericsson (ERIC), called the rules “text we can work with.”
“However, there are still some areas where Europe can improve to become a competitive hub for AI innovation,” the group said in a statement.
Romanian parliamentarian Dragos Tudrache, who led the drafting of the bill, said he was confident those who signed the new letter “didn’t read the text, but rather responded to a few stimuli.”
“The specific proposal is, in fact, [draft] The current text includes an industry-led standards definition process, industry-involved governance, and a light regulatory regime that calls for transparency. Nothing else,” he said in a statement.
“It is unfortunate that some aggressive lobbying efforts are catching other serious companies in the net, and unfortunately this is undermining the undeniable lead that Europe has gained. .”
Blando Benifay, an Italian parliamentarian and lead draftsman of the bill, told CNN, “While we intend to listen to all concerns and stakeholder voices as we work to regulate AI, we are committed to a clear and enforceable approach. There is a firm determination to enact certain rules,” he said.
“Our work has the potential to positively impact the global conversation and direction in dealing with artificial intelligence and its impact on fundamental rights, without hindering the pursuit of needed innovation,” he said. said.
