Global Tech Giants Lobby to Weaken EU’s Groundbreaking AI Regulations

The world's largest technology companies are mounting a final effort to convince the European Union (EU) to adopt a more lenient stance on regulating artificial intelligence (AI). Their goal: to avoid the looming threat of billions in potential fines.

In May, EU lawmakers reached a consensus on the AI Act, marking the first comprehensive set of rules governing AI technology. This agreement followed months of intense negotiations among various political factions. However, the enforcement of rules surrounding \"general purpose\" AI (GPAI) systems, such as OpenAI's ChatGPT, remains uncertain until the accompanying codes of practice are finalized.

These codes of practice, set to take effect late next year, won't be legally binding but will offer a compliance checklist for firms. Companies that adhere to the law but disregard the code might face legal challenges. The EU has invited nearly 1,000 companies, academics, and other stakeholders to help draft these practices, indicating a robust engagement from diverse sectors.

Boniface de Champris, a senior policy manager at CCIA Europe, emphasized the importance of getting the code right to continue fostering innovation. \"If it's too narrow or too specific, that will become very difficult,\" he added.

Data scraping has emerged as a contentious issue, with companies like Stability AI and OpenAI under scrutiny for training their models using copyrighted material without permission. The AI Act mandates that companies provide detailed summaries of the data used for training AI models, potentially allowing content creators to seek compensation if their work is used without consent.

Opinions are divided on the level of detail required in these summaries. Some business leaders advocate for minimal disclosures to protect trade secrets, while others argue for greater transparency to uphold creators' rights. Notably, OpenAI and Google have both applied to join the working groups shaping these practices, while organizations like Mozilla express concerns over potential lack of transparency.

Amid these developments, former European Central Bank chief Mario Draghi has called for a more coordinated industrial policy and increased investment to keep pace with global competitors like China and the United States. In a related turn of events, Thierry Breton, a prominent advocate for EU regulation, resigned as European Commissioner for the Internal Market after disagreements with Ursula von der Leyen, the EU's executive president.

Homegrown European tech companies are also seeking exemptions in the AI Act to support emerging firms. Maxime Ricard from Allied for Startups highlighted the need for manageable obligations tailored to startups.

As the AI Act's code of practice becomes more detailed, stakeholders warn against allowing major AI players to dilute essential transparency mandates, ensuring that the regulation both protects rights and fosters innovation.

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