The European Union is seeking a consensus on regulating artificial intelligence, and for once it might be good news for big U.S. technology companies.
A draft of the EU’s proposed AI Act has been making the rounds since 2021. After much back and forth, the EU’s representatives face a key Dec. 6 deadline to reach an agreement. If the act remains in its current state, tech investors should be encouraged, with
Microsoft,
Alphabet
‘s Google, and
Amazon.com
set to be the big winners. The legislation won’t halt AI development, but it imposes a regulatory burden that could ultimately cement their dominance.
Why Is the EU AI Act Important?
The EU AI Act is set to be the world’s first comprehensive legal framework for the sector. While the U.S. government has imposed an executive order on AI, it’s unclear how that would be enforced. In contrast, the EU Act specifies potential fines based on global revenue.
What It Means for U.S. Big Tech
Considering the difficulties of controlling access to AI models, Microsoft, Google, and Amazon will probably have to shape their approach in line with the EU’s requirements. The…
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