As the European Union finalizes the world’s first comprehensive set of rules governing artificial intelligence (AI), major tech companies like Amazon, Google, and Meta are pushing for a lighter regulatory approach. The EU’s AI Act, passed in May, is set to be a landmark in global tech governance, but the details of how strictly it will be enforced remain undecided. Until the codes of practice that accompany the law are finalized, the level of regulation that companies will face, especially concerning general-purpose AI (GPAI) systems like ChatGPT, is unclear.
Tech Industry Seeks Flexibility in AI Regulation
The tech industry is lobbying hard for a flexible and innovation-friendly interpretation of the AI Act. Boniface de Champris, a senior policy manager at the trade organization CCIA Europe, which represents tech giants like Amazon, Google, and Meta, emphasized the importance of striking the right balance. “The code of practice is crucial. If we get it right, we will be able to continue innovating,” he said, cautioning that overly specific rules could hinder the sector’s growth.
The EU has invited nearly 1,000 companies, academics, and stakeholders to help shape the non-legally binding code of practice, which will provide a compliance checklist. Though not enforceable, the code will influence how companies follow the law, and non-compliance could still result in legal challenges.
Data Scraping and Copyright Concerns
One of the central issues in the AI Act is data transparency, particularly regarding how AI models are trained. Companies like OpenAI and Stability AI have faced legal scrutiny for using copyrighted materials, such as books and images, without the creators’ permission to train their models. The AI Act will require companies to provide “detailed summaries” of the data used for model training, which could allow content creators to seek compensation if their work was used without permission.
Some companies argue that detailed disclosures could jeopardize trade secrets, while copyright advocates believe creators have the right to know if their content was used. Tech companies are pushing for minimal disclosure requirements, with OpenAI, Google, and Amazon all applying to join the working groups drafting the code.
Maximilian Gahntz, AI policy lead at the Mozilla Foundation, expressed concern about the lack of transparency. “The AI Act presents the best chance to shine a light on this crucial aspect and illuminate at least part of the black box,” he said.
Balancing Innovation and Regulation
While the AI Act is designed to ensure ethical use of AI, some business leaders argue that the EU is prioritizing regulation over innovation. Former European Central Bank chief Mario Draghi recently called for a more coordinated industrial policy and massive investment to help Europe keep pace with China and the U.S. In addition, the resignation of Thierry Breton, a strong advocate for tech regulation, may signal tension within the EU over the balance between regulation and growth.
Startups are also pushing for more manageable compliance requirements, with hopes that the final AI Act will offer carve-outs for smaller companies. “We’ve insisted these obligations need to be manageable and, if possible, adapted to startups,” said Maxime Ricard, policy manager at Allied for Startups.
A Critical Moment for AI Regulation
As the details of the AI Act are ironed out, many fear that big tech companies will attempt to water down important transparency and accountability measures. Non-profit organizations like Access Now and the Future of Life Institute have joined the process to ensure that key provisions remain intact.
Maximilian Gahntz from Mozilla cautioned, “As we enter the stage where many of the AI Act’s obligations are spelled out in more detail, we have to be careful not to allow the big AI players to water down important transparency mandates.”
The finalized code of practice is expected to be published in early 2025, with compliance requirements set to begin in August of that year. Until then, tech giants and regulators are locked in a debate over the future of AI governance in Europe, a conversation that will have significant global implications.
As the European Union works to finalize its landmark AI Act, tech companies are lobbying for lighter regulations, aiming to protect innovation while complying with new rules. With transparency and data use at the forefront of the debate, the final outcome will shape how AI is governed in Europe and beyond. As companies and regulators negotiate the details, the balance between innovation and accountability remains the key challenge for the future of AI regulation.
