US warns EU’s landmark AI policy will only benefit Big Tech

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‘Vague’ rules benefit well-funded firms that can cover compliance costs while hurting smaller companies.

The EU’s AI laws risk stifling innovation and could lead to a migration of jobs and investment to other markets.

The analysis is Washington’s most detailed position on the EU legislation that could set the tone for other countries writing rules for AI. One US concern is that the European Parliament focuses on how AI models are developed, whereas the US would prefer an approach that focuses on the risk involved in how these models are actually used.

The US State Department feedback, including a line-by-line edit of certain provisions in the law, was shared with European counterparts in recent weeks, according to people familiar with the matter who asked not to be identified discussing private documents. The US analysis is in keeping with the State Department’s calls for a more hands-off approach to the technology so as not to stifle innovation. Secretary of State Antony Blinken objected to a number of the EU Parliament’s proposals to control generative AI during a meeting with commission officials in Sweden at the end of May.

“The most important thing that the Biden administration can do is continue to have a good candid conversation with their European counterparts about what the objectives are for AI policy,” Cooper said.

 

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