EU AI law will hurt small businesses, warns US

Darko Vojinovic/AP Photo

The EU's landmark law on artificial intelligence may harm small European companies and benefit big players. This opinion was expressed by the US authorities after analysing the draft document.

Here's What We Know

The US State Department negatively assessed the version of the bill proposed by the European Parliament. Particular concerns are caused by the rules for large language models, which form the basis of generative AI.

According to Washington, some of the rules are vague and undefined. In addition, the law is too focused on the risks of developing, rather than using, AI.

The US has warned that regulation could reduce productivity and investment in AI in Europe. This would undermine the competitiveness of European companies.

European companies themselves have expressed similar concerns. In June, CEOs of the EU's largest firms expressed their concerns about the law in a letter to parliament.

Flashback

The AI law will come into force in late 2025 or early 2026.

The AI law will come into force in late 2025 to early 2026. Some EU countries have already started to regulate generative AI before then. A 2023 poll showed that Europeans approve of tough regulations for the technology.

Source: Bloomberg