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Leading technology firms are in a final push to influence the European Union to accept a less rigid regulatory framework for artificial intelligence ahead of being forced with a heavy fine.
This is after the world's first comprehensive regulation of the EU AI Act was recently passed in a protracted process among lawmakers.
The AI Act imposed rules governing "general purpose" AI, such as in the case of OpenAI's ChatGPT. However, the enforcement rules are still to be defined as the codes of practice are in the process of being drafted. This raises other questions about the copyright injunctions and massive billions of dollars in fines imposed on companies in operation within the AI sector. Read More
The EU invited stakeholders, including companies and academics, to contribute to the code of practice. Almost 1,000 applications had been received by the time going into the deadline, very high according to sources close to the negotiations. It will not be binding when released late next year but will encourage companies to demonstrate compliance with it, making legal risks for those that ignore it.
The importance of the code was not lost on Boniface de Champris, senior policy manager at CCIA Europe. "If it's too narrow or too specific, that will become very difficult," he warned.
In answer to that, questions have bubbled up about data usage, particularly about copyrighted works. The AI Act will oblige companies to explain with greater detail what kind of data they are using for training. This requirement has opened up a battle between protecting trade secrets and the rights of copyright holders.
A lack of transparency about its data sources has been one of the criticisms leveled against OpenAI, whereas Google and Amazon have openly declared that they are willing participants in the working groups writing the code.
Leaders in the industry are now arguing that more competencies are needed and also more manageable responsibilities in the regulation, particularly for start-ups. Hence, between calls for more balance between regulation and competitiveness in the EU, smaller firms would demand exemptions that fit their needs that are different from the others.
Early next year, the code of practice is expected to be published. It will give companies till August 2025 to adjust their operations to conform to that code. Other non-profit organizations interested in this drafting process include Access Now and Mozilla, as transparency in AI operations is called for here.
As the debate over the AI Act is going on with time, regulators need to continue walking that fine line of innovation without going too lightly on accountability in this rapidly changing AI landscape.
