Science & Technology

EU Digital Chief Says About Impact of AI Act on Innovation

The European Union’s (EU) competition and digital chief, Margrethe Vestager, supported the AI Act.

EU Digital Chief Says About Impact of AI Act on Innovation

The specified legal initiative has faced a wave of criticism. In the public space, many disagreed with the measures to regulate the creation and development of artificial intelligence proposed by European legislators. Margrethe Vestager characterizes the negative assessment of the law as wrong, arguing that this decision will create legal certainty for technology startups operating in the sphere of machine intelligence.

European legislation in the area of digital intelligence is focused on establishing clear rules for the creation of basic models of artificial intelligence, which are of primary importance for generative AI products.

Margrethe Vestager says that the law will not become an obstacle to the implementation of projects related to research and innovation. In her opinion, the legal framework being formed in the EU will strengthen relevant activities. She stated that the legislation creates a clear framework to ensure predictability and legal certainty in the market.

Startups working on the creation of basic models of artificial intelligence, and those who will use the corresponding digital products, will receive a set of rules that must be followed. This clarity will allow them to effectively navigate the regulatory environment and make informed decisions about AI technologies.

Margrethe Vestager stated the importance of avoiding excessive regulation. According to her, solving this problem will help stimulate innovation and research. Margrethe Vestager stated that the AI Act provides a balance by offering guidelines and norms while at the same time not hindering technological progress.

The idea of European legislators is to create a favorable legal environment that encourages local technology companies to invest in the development of artificial intelligence.

Margrethe Vestager noted that firms from the EU have fewer opportunities compared to their American counterparts, mentioning in this context limited access to venture capital. She stated that regulation in itself is not a kind of driving force for the development of AI, being more a means of creating trust in the market and raising investments.

French President Emmanuel Macron is one of those unhappy with the AI Act. According to him, because of this law, European technology companies may be at a disadvantage compared to firms from the United States and China. Emmanuel Macron said that excessive regulation can become an obstacle to production and innovation.

Similar concerns have become a kind of basis for discussions in Germany and Italy. In this case, the discussions focused on the need to amend the AI Act or prevent its adoption.

The law provides for a two-tier approach that sets different requirements for developers of general-purpose artificial intelligence models and creators of AI configurations in sensitive spheres, including, for example, healthcare. This legal concept aims to achieve a balance between flexibility and regulation.

The AI Act officially received temporary status on December 8, continuing to need the approval necessary for its entry into force. The law will come into force two years after its final approval.

As we have reported earlier, UK, US, EU and China Sign Declaration of AI’s Danger.

Serhii Mikhailov

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Serhii’s track record of study and work spans six years at the Faculty of Philology and eight years in the media, during which he has developed a deep understanding of various aspects of the industry and honed his writing skills; his areas of expertise include fintech, payments, cryptocurrency, and financial services, and he is constantly keeping a close eye on the latest developments and innovations in these fields, as he believes that they will have a significant impact on the future direction of the economy as a whole.