What Large European companies have sent an open to the letter to the EU commission regarding AI legislation
Why They believe the tough line being taken by EU lawmakers could hinder progress in their sectors
What Next The EU’s proposal will be used to negotiate legislation in member states
In an open letter signed by over 150 executives, the companies argue that while AI presents an opportunity for Europe to lead in technology, stringent regulation could hinder competitiveness and fail to address key challenges.
The letter was sent to the European Commission, parliament, and member states, expressing concerns about the draft legislation’s potential impact on Europe’s competitiveness and technological sovereignty.
The EU recently reached an agreement on what are considered the world’s toughest rules on AI.
The draft Artificial Intelligence Act will serve as the basis for negotiations between member states and the European Commission.
However, concerns about the risks associated with rapidly advancing AI technology have been growing, with calls for regulation intensifying since the launch of OpenAI’s ChatGPT chatbot.
Renault and Heineken Co-Sign
The signatories of the letter, which include Renault and Heineken, are particularly concerned about generative AI.
They argue that the proposed regulations would heavily restrict foundation models, such as chatbots, regardless of their use cases.
Compliance costs and liability risks associated with developing and implementing such systems would disproportionately affect companies, potentially leading to their departure from the EU and a productivity gap compared to the US.
Instead of rigid compliance, the companies advocate for a risk-based approach that focuses on broad principles in the legislation.
They also propose the establishment of a regulatory body comprising industry experts to monitor the implementation of the law as AI technology advances.
However, some MEPs, including Dragoș Tudorache, who led the development of the draft law, have criticized the signatories, suggesting that they may not have fully understood the text and highlighting the industry-led process and light regulatory regime already outlined in the legislation.