Summary
The European Union’s approach to AI policy, as reflected in the AI Act, aims to foster trustworthy AI that respects fundamental rights, safety, and ethical principles, while also boosting innovation and establishing the EU as a global AI leader through a risk-based, comprehensive, and flexible regulatory framework.
OnAir Post: Europe’s AI Policy
News
Hyperdimensional, – February 13, 2025
Introduction
At the AI Action Summit in Paris this week, Vice President J.D. Vance delivered a broadly optimistic message on AI. He chastised the European Union for moving too quickly with preemptive regulations and indicated that the Trump Administration would not be following in the EU’s lead.
I applaud the Vice President for his clear-eyed and optimistic message, but I am not sure he’s right on the facts: as we speak, more than a dozen US states are implementing laws that look strikingly similar to the AI Act. Consistent readers of this newsletter will know that I am referring to a set of laws focused on algorithmic discrimination in “automated decision systems.”
Each of these bills is complex, and frustratingly, they vary considerably between states. That has made it a difficult story for me to cover. So what I’d like to do today is step back and try to provide wider context: How did these laws come to be? What problem do they purport to solve? In what ways are they like the EU’s AI Act? Is that resemblance intentional? What would be the effect of these bills passing?
I think what you will find is that America is on the verge of creating a vast regulatory apparatus for AI, regardless of Vice President Vance’s admirable skepticism of such things. And there isn’t much time to push back: most of the states considering these laws will have ended their legislative sessions within three to four months from today. Given that, let’s dive in.
How we got here
When the European Commission began drafting the AI Act in 2021, society’s understanding of AI was fundamentally different than it is today. Before 2022, “AI” meant, largely, narrow machine learning systems: computer vision models used for quality assurance in factories and farms, predictive models intended to help banks process loan applications, systems intended to help enhance electrical grid efficiency, and the like. These systems were used for discrete functions, often aiding firms and individuals in making specific kinds of decisions (Is this part defective? Is this loan candidate likely to repay their loan?).
At the time, few outside the still-relatively-small AI industry imagined the “generalist” AI systems like ChatGPT that are a common part of life today. These new systems came out before the AI Act had officially passed the European Parliament, but after much of the law had been negotiated. Rather than starting from scratch, European regulators chose to add in a placeholder about “general-purpose AI models,” and to flesh out the details later.
Two weeks ago, the first product of this process was released: the draft General-Purpose AI Code of Practice. The first round of comments are due on November 28. This essay constitutes our comment.
About
European approach to artificial intelligence
The EU’s approach to artificial intelligence centers on excellence and trust, aiming to boost research and industrial capacity while ensuring safety and fundamental rights.
The way we approach Artificial Intelligence (AI) will define the world we live in the future. To help build a resilient Europe for the Digital Decade, people and businesses should be able to enjoy the benefits of AI while feeling safe and protected.
The European AI Strategy aims at making the EU a world-class hub for AI and ensuring that AI is human-centric and trustworthy. Such an objective translates into the European approach to excellence and trust through concrete rules and actions.
In April 2021, the Commission presented its AI package, including:
- its Communication on fostering a European approach to AI;
- a review of the Coordinated Plan on Artificial Intelligence (with EU Member States);
- its Regulatory framework proposal on artificial intelligence and relevant Impact assessment.
In January 2024, the Commission launched the AI innovation package to support Artificial Intelligence startups and SMEs. The package includes several measures to support European startups and SMEs in the development of trustworthy AI that respects EU values and rules.
One key element of this package is the Communication on boosting startups and innovation in trustworthy artificial intelligence that sets out a strategic investment framework in trustworthy AI for the Union to capitalize on its assets, in particular its world-leading supercomputing infrastructure, and to foster an innovative European AI ecosystem.
The main landmark initiative of the Communication is “GenAI4EU” to stimulate the uptake of generative AI across the Union’s key strategic industrial ecosystems and that will encourage the development of large open innovation ecosystems that will foster collaboration between AI startups and deployers of AI in industry as well as the public sector.
Source: European Commission
Key Principles and Objectives
- Human-centric and Trustworthy AI:The EU prioritizes AI that is developed and used in a way that respects human values and rights, ensuring safety and ethical considerations are paramount.
- Risk-Based Approach:The AI Act categorizes AI systems based on their potential risks, with different levels of regulation and requirements applied to each category.
- Promoting Innovation and Competitiveness:The EU aims to create a favorable environment for AI innovation and development, while also ensuring that AI systems are used responsibly and ethically.
- Strengthening Technological Sovereignty:The EU seeks to become a world-class hub for AI, building strategic leadership in the sector and ensuring that AI is developed and used in a way that benefits European citizens and businesses.
- Protecting Fundamental Rights:The EU is committed to protecting fundamental rights, democracy, and the rule of law from potential harms caused by AI systems, while also ensuring that AI is used to promote these values.
- Risk Categories:The AI Act classifies AI systems into three risk categories: unacceptable risk (prohibited), high risk (subject to specific requirements), and minimal or limited risk (subject to lighter obligations).
- Unacceptable Risk:AI systems that pose an unacceptable risk, such as those used for social scoring or manipulation, are prohibited.
- High-Risk AI:AI systems that are used in critical areas like law enforcement, employment, or critical infrastructure are subject to specific requirements, including risk assessments, documentation, and transparency measures.
- Transparency Obligations:The AI Act requires transparency for all AI systems, ensuring that users are aware when they are interacting with AI.
- Enforcement:The AI Act includes provisions for enforcement, with penalties for non-compliance.
- The AI Act also addresses general-purpose AI models, requiring providers to assess and mitigate potential risks associated with these models.
- The EU’s AI strategy outlines the EU’s vision for AI, emphasizing excellence and trust.
- This plan aims to accelerate investments in AI, align AI policies across the EU, and foster AI excellence from the lab to the market.
- This package supports startups and SMEs in developing trustworthy AI that complies with EU values and rules.
- This initiative focuses on the development of novel use cases and emerging applications of AI in Europe’s 14 industrial ecosystems, as well as the public sector.
- This office supports the implementation of the AI Act and other AI-related policies.
Source: Gemini + Curators
