EU tech coalition warns against over-regulating AI before EU AI Act finalization

Businesses and tech companies unite against over-policing AI

A coalition of businesses and tech companies in the European Union has come together to issue a joint letter to EU regulators. The letter serves as a warning against excessive regulation of powerful artificial intelligence (AI) systems, emphasizing the importance of innovation.

Concerns over stifling innovation

The letter, signed by 33 companies operating in the EU, raises concerns that overly stringent regulations for foundation models like OpenAI's ChatGPT and general-purpose AI (GPAI) could hinder necessary innovation in the region. The data cited in the letter shows that only 8% of companies in Europe currently utilize AI, falling significantly short of the European Commission's goal of 75% by 2030. Additionally, just 3% of the world's AI unicorns originate from the EU.

AI's impact on Europe's competitiveness

The coalition emphasizes that Europe's competitiveness and financial stability heavily rely on the ability of European companies and citizens to deploy AI in key sectors such as green tech, health, manufacturing, and energy. They believe that for Europe to become a global digital powerhouse, it needs companies leading in AI through foundation models and GPAI, both of which are under scrutiny in the forthcoming EU legislation. The letter urges regulators not to regulate these technologies out of existence or force them to relocate.

Suggestions for EU leaders

In addition to highlighting the importance of avoiding excessive regulation, the coalition also provides suggestions for EU leaders. These suggestions include reducing compliance costs for companies, focusing on regulating high-risk use cases rather than specific technologies, and clarifying existing legislation overlaps. By implementing these suggestions, the coalition believes that Europe can strike a balance between regulation and fostering innovation in the AI sector.

EU AI Act in progress

The coalition's letter comes at a time when the EU is finalizing its landmark EU AI Act, which was initially passed in June. The act is currently undergoing review and revision by member states. The concerns raised by the coalition add to the pressure on EU officials to carefully consider the implications of overly strict AI regulations and strike a balance that supports innovation while addressing potential risks.