The European Union is changing its regulatory approach to technology to attract more investment in artificial intelligence, the Financial Times reports.
Hanna Virkkunen, the European Commission's Executive Vice President for Digital Policy, emphasized that the EU's goal is to support companies in complying with AI regulations without creating unnecessary bureaucratic requirements. "We want to ensure that our companies are not subject to additional reporting obligations," she said.
As part of this simplification, the EU has announced the withdrawal of a planned directive on AI liability. In addition, a new code of practice on AI, expected in April, will simplify reporting requirements by limiting them to the rules already in place under the AI Act. The Act, passed earlier this year, categorizes AI technologies into three levels of risk, with stricter requirements for high-risk applications such as healthcare or public transportation.
High-performance AI models, such as OpenAI's GPT-4 and Google's Gemini, are subject to additional transparency obligations, especially in terms of model training. However, tech giants such as Google and Meta have expressed concerns about the regulatory framework. Earlier this month, Meta's lead lobbyist, Joel Kaplan, warned in Brussels that the new code could set "unworkable and technically difficult requirements."
The changes to EU regulations come amid heightened tensions with the United States. President Donald Trump has criticized EU fines imposed on American tech companies, and his administration has called EU regulations too restrictive. Speaking at an AI summit in Paris this week, US Vice President J.D. Vance condemned "burdensome international" rules targeting tech giants.
However, Virkkunen rejected claims that the changes in EU regulations are a response to US pressure. "It's a matter of our own desire to be more competitive," she said. "We are not dependent on the United States."
While the EU is looking to reduce bureaucratic requirements, Virkkunen emphasized that the Union will remain firm in enforcing the rules governing online platforms. She emphasized that EU rules effectively create a level playing field and ensure compliance by global tech companies, as Europe is one of the largest markets for US corporations.