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AI law in Europe under threat of repeal due to protests from European businesses

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AI law in Europe under threat of repeal due to protests from European businesses

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AI law in Europe under threat of repeal due to protests from European businesses

The largest European companies fear for the technological sovereignty of Europe.

Today, more than 150 executives from major European companies such as Renault, Heineken, Airbus and Siemens sent open letter to the European Parliament, the European Commission and the governments of EU member states, in which they expressed their disagreement with the recently adopted Law on Artificial Intelligence (AI Act). The authors of the letter believe that this law is ineffective and may adversely affect competition and European technological sovereignty.


What is the Artificial Intelligence Law?

Artificial Intelligence Law ( AI Act ) governs the development, use and control of AI systems in Europe. The purpose of the AI ​​Act is to ensure the safety, ethics and trust in artificial intelligence technology, as well as to promote innovation and competitiveness in this area.

June 14 The European Parliament approved the bill after two years of development. There are several stages left before the new law comes into force, all approval processes and negotiations should be completed by the end of the year.


Why are companies against the AI ​​Act?

The signers of the open letter argue that the AI ​​Act in its current form could stifle the ability of artificial intelligence technology to allow Europe to “return to the technological forefront.” The authors believe that the approved rules are too strict and risk undermining the bloc’s technological ambitions instead of creating a suitable environment for AI innovation.

One of the main concerns companies point to is the stringent regulations specifically targeting generative AI systems, a subset of AI models that are typically categorized as “core models.” Under the AI ​​Act, providers of core AI models – regardless of intended use – will be required to register their product in the EU, undergo a risk assessment and comply with transparency requirements, such as public disclosure of any copyrighted data used to train their models.

The open letter argues that AI developers will be subject to disproportionate non-compliance costs and liability risks, which could encourage AI providers to leave the European market entirely.

The signatories declare that “Europe must not remain on the sidelines.” The letter’s authors urge EU legislators to abandon rigid compliance obligations for generative AI models and focus on those that can comply with “broad principles in a risk-based approach.”


How are EU legislators reacting?

The drafter of the Artificial Intelligence Law, Member of the European Parliament Dragos Tudorache, responded to the letter and expressed his regrets that the aggressive lobbying of some is taking over other serious companies.

Tudorache claims that the companies in the letter are responding “on the spur of some other companies.” He noted that the AI ​​Act provides for an industry-based standard-setting process, industry-participatory governance, and a light regulatory regime that requires transparency. And there is nothing more behind this law.

The companies also urged the EU to create a regulatory body of AI experts to oversee how the AI ​​Act is applied as the technology advances. However, it is not known how ready the EU legislators are for a dialogue with the industry on this issue.

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