Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Sunday, Feb 25, 2024


Top Companies Express Concerns Over Europe's Proposed AI Law, Citing Competitiveness and Investment Risks

Executives Call for Revision of EU AI Act, Warning of Potential Consequences
A group of prominent European business leaders has raised significant concerns about the European Union's proposed legislation on artificial intelligence (AI), warning that it could negatively impact the bloc's competitiveness and potentially lead to an exodus of investment.

In an open letter addressed to EU lawmakers on Friday, C-suite executives from companies including Siemens, Carrefour, Renault, and Airbus expressed "serious concerns" about the EU AI Act, which is set to become the world's first comprehensive AI regulation.

The letter also included prominent tech figures such as Yann LeCun, Chief AI Scientist of Meta (formerly Facebook), and Hermann Hauser, the founder of British chipmaker ARM.

The group, consisting of over 160 executives, emphasized that the draft legislation goes too far, particularly in its regulation of generative AI and foundation models, which underpin popular platforms like ChatGPT.

Generative AI has garnered attention this year, with experts warning about the potential negative implications of systems that enable machine-generated content for tasks like writing essays, taking tests, and building websites. Last month, hundreds of experts highlighted the risk of AI-related human extinction, urging global prioritization of risk mitigation alongside other societal-scale threats.

The group argued that the EU proposal's broad application to such software, regardless of its specific use cases, could result in high compliance costs and disproportionate liability risks. They expressed concern that such regulations could prompt highly innovative companies to relocate their activities abroad, leading to a significant productivity gap between Europe and other regions.

The executives called for policymakers to revise the bill's terms, which recently obtained the approval of European Parliament lawmakers and is currently being negotiated with EU member states.

The group suggested that European law should confine itself to stating broad principles in a risk-based approach, given the limited understanding of the risks, business models, and applications of generative AI. They proposed the establishment of a regulatory board of experts to oversee and continuously adapt these principles in response to the rapidly evolving technology.

Furthermore, the executives emphasized the importance of collaboration with their counterparts in the United States, as regulatory proposals have also been made in that country. They urged the creation of a legally binding level playing field to ensure fair competition.

Failure to address these concerns and excessive regulatory demands, the group warned, could undermine Europe's international standing and its significance in the global landscape of transformative technologies.

As AI's widespread adoption continues, experts increasingly call for enhanced regulation. The United States and China have also unveiled plans for AI regulation in recent months. Sam Altman, CEO of OpenAI, the company behind ChatGPT, has been advocating for coordinated international regulation during his high-profile trips worldwide.

The EU rules represent the world's first legally binding attempt to regulate various aspects of AI, according to the European Parliament. Negotiators hope to reach an agreement on the AI Act by the end of the year. Once adopted by the European Parliament and EU member states, the act will become law.

The current version of the AI Act prohibits harmful AI systems, including real-time facial recognition in public spaces, predictive policing tools, and social scoring systems akin to those used in China. The legislation also outlines transparency requirements for AI systems, such as disclosing AI-generated content and implementing safeguards against the generation of illegal content.

Non-compliance with the AI Act could result in substantial fines, potentially reaching up to €40 million ($43 million) or 7% of a company's worldwide annual turnover, whichever amount is higher. The penalties will be proportionate, taking into account the market position of small-scale providers, indicating potential leniency for startups.

While some companies, such as SAP and Ericsson, have shown support for the rules, calling them a framework to work with, concerns expressed by the group of business leaders highlight the need for careful consideration and adjustments to ensure Europe remains an attractive hub for AI innovation.

The ongoing debate and collaboration among stakeholders are crucial to strike a balance between effective regulation, safeguarding fundamental rights, and fostering innovation in the field of artificial intelligence.

Related Articles

Hong Kong News
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
Steve Jobs' Son Launches Venture Capital Firm With $200 Million For Cancer Treatments
Google reshuffles Assistant unit, lays off some staffers, to 'supercharge' products with A.I.
End of Viagra? FDA approved a gel against erectile dysfunction
UK sanctions Russians judges over dual British national Kara-Murza's trial
US restricts visa-free travel for Hungarian passport holders because of security concerns
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Political leader from South Africa, Julius Malema, led violent racist chants at a massive rally on Saturday
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
'I am not your servant': IndiGo crew member, passenger get into row over airline meal
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Spanish Citizenship Granted to Iranian chess player who removed hijab
US Senate Republican Mitch McConnell freezes up, leaves press conference
Speaker McCarthy says the United States House of Representatives is getting ready to impeach Joe Biden.
San Francisco car crash
This camera man is a genius
3D ad in front of Burj Khalifa
Next level gaming
BMW driver…
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The politician and the journalist lost control and started fighting on live broadcast.
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
Joe Biden admitted, in his own words, that he delivered what he promised in exchange for the $10 million bribe he received from the Ukraine Oil Company.
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.