TL;DR:
- The US expresses concerns over the EU’s AI policy, asserting it may favor tech giants and harm smaller businesses.
- The analysis centers on the European Parliament’s version of the AI Act, pointing out vague provisions.
- The US advocates for a risk-centric approach in AI regulation, differing from the EU’s focus on development.
- The US warns of potential productivity dampening and job migration due to EU regulations.
- Investment in AI R&D and commercialization in the EU is expected to be limited due to resource-intensive requirements.
- The State Department shares feedback confidentially with EU counterparts, and some concerns align with those of EU member countries.
- The AI Act calls for transparency in source material for large language models.
- The US’s stance is consistent with a hands-off approach to AI, although it exhibits some ambivalence.
- US and EU officials emphasize the need for aligning basic AI policy definitions.
Main AI News:
In an exclusive revelation, the United States has sounded an alarm regarding the European Union’s groundbreaking artificial intelligence (AI) policy, asserting that it may disproportionately favor tech giants at the expense of smaller enterprises. This cautionary note, concealed until now, emerges from undisclosed documents that offer a comprehensive US perspective on the AI Act proposed by the European Union.
The focal point of the US analysis primarily centers on the European Parliament’s rendition of the AI Act, a regulatory framework that encompasses provisions related to generative AI. The documents, confidentially obtained by Bloomberg News, shed light on certain aspects of the Parliament’s legislation, characterizing them as “vague or undefined.”
One of the major concerns voiced by the United States is the European Parliament’s emphasis on the development of AI models, whereas the US advocates for a more risk-centric approach, concentrating on the practical deployment of these models. This philosophical divide underscores the intricate dynamics at play in the global AI landscape.
The US analysis issues a stern warning, cautioning that European Union regulations could potentially “dampen the expected boost to productivity and potentially lead to a migration of jobs and investment to other markets.” Furthermore, these new regulations could pose a substantial impediment to “investment in AI research and development (R&D) and commercialization within the EU,” primarily due to the resource-intensive nature of training large language models.
The United States State Department has provided feedback, including meticulous line-by-line edits of specific provisions within the proposed legislation. These insights have been discreetly shared with European counterparts in recent weeks, as confirmed by sources familiar with the matter, who requested anonymity given the confidential nature of the documents.
One source highlighted that these comments were offered in a spirit of cooperation and alignment of values. It is noteworthy that some of the concerns expressed by the United States have found resonance among EU member countries in response to the European Parliament’s version of the AI Act.
Both the State Department and the European Commission have chosen to maintain a measured silence on the matter, refraining from public comments that could further escalate the ongoing discourse.
The AI Act, as ratified by the EU Parliament in June, introduces significant provisions necessitating greater transparency regarding the source material used in training the large language models that underpin generative AI products. The adoption of this legislation paves the way for negotiations among the parliament, the European Commission, and member states, with the goal of finalizing the rules by year-end.
This US analysis is consistent with the State Department’s advocacy for a more hands-off approach to AI technology, aimed at fostering innovation. Secretary of State Antony Blinken expressed reservations about several proposals made by the EU Parliament to regulate generative AI during a meeting with commission officials in Sweden in late May.
However, it is essential to note that Washington’s stance on regulation has exhibited a degree of ambivalence. While the United States initially pushed back when the European Commission first proposed the AI Act in 2021, some American officials have lately shown a more favorable disposition toward mandatory rules. This shift comes in response to growing concerns expressed by AI developers and ethicists regarding the potential risks associated with the technology.
Aaron Cooper, Head of Global Policy at BSA The Software Alliance, a trade group actively engaged with both US and EU officials on AI regulation matters, underscores the importance of aligning fundamental principles in countries’ AI policies. “The most important thing that the Biden administration can do is continue to have a candid conversation with their European counterparts about the objectives of AI policy,” emphasizes Cooper.
Conclusion:
The US-EU divide on AI regulation reflects the intricate dynamics of the global AI landscape. While the US calls for innovation-friendly policies, concerns about AI’s potential risks are pushing some American officials towards embracing regulation. The transatlantic dialogue on AI principles and regulations has significant implications for the market, impacting innovation, competition, and ethical considerations.
