Top European business leaders sounded the alarm in an open letter to representatives of the EU's Commission, Parliament and Council of Ministers that the current draft regulation on Artificial Intelligence would "jeopardise Europe's competitiveness and technological sovereignty". On the other hand, the initiative does not effectively address "the challenges we are and will be facing".
According to the authors of the appeal letter, there is a threat of setbacks, especially with generative AI systems, which can generate new texts, images, music or videos based on existing, often protected works and thus trained basic models. Especially European Foundation Models would be "heavily regulated regardless of their use cases". Companies developing and implementing such systems "would face disproportionate compliance costs and disproportionate liability risks".
"Like the invention of the Internet or the breakthrough of silicon chips, generative AI is the kind of technology that will be decisive for the performance capacity and therefore the significance of different regions," the authors highlight. "States with the most powerful Large Language Models will have a decisive competitive advantage.
The managers do not want to deny the "inherent complexity and challenges" that generative AI brings along, as well as the "undeniable need for proper regulation". Given the "profound impact AI has on many areas of life", it is essential to "properly train these models and ensure their safe use".
Anchoring such rules in law and providing them "with a rigid compliance logic" is, however, a "bureaucratic [and ineffective] approach" and ultimately does not fulfil its purpose, according to the appeal. European law should therefore "confine itself to stating broad principles in a risk-based approach". The implementation of these principles could be entrusted to a special regulatory authority composed of experts at EU level.
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