European companies claim EU AI law threatens technological sovereignty

More than 150 executives from companies such as Renault, Heineken, Airbus and Siemens have signed an open letter calling for a review of EU plans to regulate artificial intelligence.

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They argue that the AI Act, in its current state, could deny Europe the opportunity to become a technological leader. The letter's authors say the rules are too extreme and risk undermining the bloc's ambitions instead of providing a suitable environment for innovation.

One of the main problems highlighted by the signatories relates to strict rules for generative AI systems Under the AI Act, providers of basic models must register their product with the EU, undergo risk assessments and meet transparency requirements.

The open letter argues that developers will be exposed to disproportionate compliance costs and liability risks. This could encourage AI vendors to withdraw from the European market altogether.

The companies have called on lawmakers to relax compliance obligations on generative models. They have also asked for the formation of a body made up of experts in the AI industry to monitor how the law can be applied as the technology evolves.

Source: The Verge.