Let's Give AI in Europe a Fighting Chance: Joint Statement by European Digital Industry Representatives
Worried about potential over-regulation of artificial intelligence (AI) in the EU, over 30 European digital industry representatives have come together to sign a joint statement titled 'Let's Give AI in Europe a Fighting Chance.' In this statement, they emphasize the need for a risk-based approach to AI regulation and express concerns about the low adoption rate of AI in Europe. Join us as we delve into their recommendations and the implications for Europe's competitiveness and financial stability.
Concerns about Over-Regulation
The impact of the AI Act on AI regulation in the EU
European digital industry representatives are expressing concerns about the potential over-regulation of artificial intelligence (AI) in the EU through the AI Act. While recognizing the need for regulation, they emphasize the importance of a risk-based approach that focuses on high-risk uses of AI rather than burdening every new technology with extensive regulations.
By adopting a risk-based approach, the representatives argue that Europe can strike a balance between ensuring safety and fostering innovation. They believe that excessive regulation could stifle the growth of AI in Europe and hinder its competitiveness on a global scale.
Low Adoption Rate of AI in Europe
The current state of AI implementation in European companies
One of the key concerns highlighted in the joint statement is the low adoption rate of AI in Europe. Currently, only 8% of European companies are utilizing AI in their operations. This lag in adoption puts Europe at a disadvantage compared to other regions where AI is more widely embraced.
The representatives argue that Europe's competitiveness and financial stability depend on the ability of European companies and citizens to leverage AI in key sectors such as green tech, health, manufacturing, and energy. They believe that encouraging AI adoption is crucial for Europe to stay at the forefront of technological advancements.
Compliance Cost and Burden on SMEs
The financial implications of the AI Act for small and medium enterprises
The joint statement raises concerns about the compliance cost under the AI Act, particularly for small and medium enterprises (SMEs). It is estimated that the cost of compliance can exceed €300,000 for SMEs with a single AI-enabled product on the market.
The signatories of the statement urge for a reduction in this burden and emphasize the importance of enabling SMEs to leverage general-purpose artificial intelligence (GPAI), foundation models, and other emerging AI technologies in their innovations. They believe that supporting SMEs in adopting AI will contribute to overall economic growth and technological advancement in Europe.
Recommendations for Moderating Regulation
Proposed measures to ensure a balanced approach to AI regulation
The joint statement provides four recommendations to moderate the regulation of AI in Europe:
1. Focus on High-Risk Uses:
The representatives emphasize the need to prioritize regulation on high-risk uses of AI, rather than imposing extensive regulations on every new AI technology.
2. Reduce Compliance Burden:
They urge for a reduction in the compliance cost for SMEs and advocate for the inclusion of emerging AI technologies in the regulatory framework.
3. Enable Innovation:
The signatories highlight the importance of enabling European companies and citizens to deploy AI in key sectors such as green tech, health, manufacturing, and energy, to maintain Europe's competitiveness.
4. Risk-Based Approach:
They stress the need for a risk-based approach to AI regulation, which balances safety and innovation, ensuring that Europe remains at the forefront of AI advancements.