In a recent interview with the Financial Times, Margrethe Vestager, EU competition and digital chief, strongly defended the proposed AI law.
This laws has drawn criticism, particularly from French President Emmanuel Macron, but Vestager argued that it would offer much-needed “legal certainty” to technology startups working with AI.
Vestager emphasized: “The AI law creates predictability and legal certainty available in the market when things are used.”
Not everyone agrees, and a few argue that the law will effectively slow the expansion of the EU AI industry and burden developers with burdensome compliance tasks.
Vestager added: “It is essential that there isn’t any regulatory overreach, that innovation and research are encouraged again.” This reflects the argument that the AI law will promote somewhat than hinder innovation and research within the EU.
The law has sparked controversy, particularly after Macron warned of the risks of over-regulation, declaring: “We can determine to control much faster and way more strongly than our important competitors.” But we are going to regulate things that we’ll now not produce or invent . That’s never a great idea.”
Although it’s agreed this month, the AI law remains to be awaiting ratification by EU member states. Some countries resembling France, Germany and Italy are reportedly considering changes and even blocking the law.
The laws introduces a dual approach to AI regulation. It sets transparency requirements for general AI models like OpenAI's and imposes stricter rules for models utilized in sensitive sectors like healthcare.
There are also plans to strictly restrict facial recognition technology aside from certain law enforcement purposes.
The changing terms and definitions of the law
The reactions to the AI law were different. Both tech corporations and officials fear the law could possibly be too burdensome 150 executives of huge corporations They openly express their concerns concerning the impact on business.
Jeannette zu Fürstenberg, founding partner of La Famiglia VC, warned of “catastrophic consequences for European competitiveness”.
MeMeanwhile, Europe's tech ecosystem has shown signs of growth, particularly in enterprise capital investment, although its global influence stays limited in comparison with the US and Asia. Regulation runs the danger of slowing down this growth.
The true impact of the AI law – whether it protects EU residents from potential AI risks or hinders technological progress – will only develop into clear over time.
