US warns EU on the AI act

The folks at US state department have done an analysis focused on the EU Parliament's version of the AI Act, which includes rules on generative AI. They think that this AI Act will only benefit Big Tech. 

What's going on here?

The US warned the EU that its AI Act may disadvantage smaller firms and hurt EU competitiveness.

What does this mean?

The US is concerned some provisions are vague and that the EU focuses too much on how AI models are developed rather than their risks. This could dampen productivity gains and investment in the EU, limiting competitiveness. The rules may also hamper investment in AI research and commercialization in the EU, since training large language models requires substantial resources.

The US shared this feedback with EU counterparts in recent weeks. Some of the concerns echo those of EU member states regarding the Parliament's proposal. This analysis aligns with the US preference for a light touch approach to AI regulation to foster innovation. But the US has sent mixed messages, with some officials warming to the idea of mandatory rules amid ethical concerns about AI.

Why should I care?

The US analysis highlights key differences in regulatory approaches between the US and EU. How the EU regulates foundational AI technologies could impact innovation and the competitiveness of EU firms. If regulations are too stringent, investment and jobs may migrate out of the EU. But lax rules also risk potential harms from uncontrolled AI advances. Finding the right balance will shape the future AI landscape.