Will regulation make the EU the most trusted power in AI?
Ensuring AI respects fundamental laws and values and is safe for citizens was the EU's goal when it passed the AI Act. To help implement this legislation from next year, the EU created a voluntary Code of Conduct, but some companies say that signing up to this code would hinder innovation.
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00:00Artificial intelligence that respects fundamental laws and values and that is safe for citizens.
00:20This was the European Union's goal when it passed the AI Act, a law that will apply to companies developing this technology.
00:28To help implement this legislation from next year, the EU created a voluntary code of conduct, but some companies say that will slow down innovation.
00:39Regulating one of the most revolutionary tools for humanity is the theme of this EU decoded.
00:45The AI Act came into force in 2024 and defines four risk levels for the use of artificial intelligence, from minimal to unacceptable.
00:54It prohibits practices that violate democratic values and human rights.
00:59One example is categorising individuals by their biometric data, which could lead to unfairly profiling minority groups.
01:07The EU now invites AI companies such as the generative chatbots ChatGPT, Mistral, Gemini and Claude to sign a voluntary code of practice on general purpose AI.
01:18By signing the code and adhering to the rules, they are deemed compliant with the AI Act.
01:23Companies that refuse to sign the code may face more stingent expectations and administrative burdens.
01:30Let's hear what Europeans think about this regulatory move.
01:35I feel like if we leave these programs unregulated, they will also, like, they will make harm as much as good as they do.
01:45It has to be like a global thing. So then it's the same rules in China and the same rules in here, but also the same rules in America.
01:54Partially, because it's seen that if you can recreate voices, views, faces, videos, that would be regulated and that would be more restrictive rules.
02:05I know that certain things will never be changed by artificial intelligence.
02:11But they are already there and the European community will certainly intervene better. So, yes, I'm calm.
02:16Let's break it down with Cynthia Crute, senior tech policy reporter at Aeronews.
02:21When it comes to the code, the European Commission is taking somehow a pedagogical approach to this sector.
02:28But what will happen to AI companies if they will violate the AI Act once it's fully implemented?
02:37Yeah, I think it's important to know that the AI Act is being implemented in a period of time. So from 2024 to 2027.
02:46And this August, the rules for general purpose AI models, such as JetGPT or Gemini, they will enter into force.
02:55So that means that the products that were already on the market, such as those examples, they have two more years to comply with the rules.
03:01And everything that's been put on the market after August, they have to comply immediately.
03:07And in case there are breaches, the Commission can impose a fine of up to 15 million euros.
03:13Major players like OpenNI and Anthropik support the code, decided that they wanted to sign it.
03:20But others are refusing, like Meta, which is also an important company.
03:25What are the arguments being used and what is the implication of such a refusal in terms of the global market?
03:32Meta has been, I think since the drafting process of the code started last September, very critical of this whole process.
03:40They say it stifles innovation and they've rolled out a few tools that they cannot fully use in Europe.
03:46Also because of data protection rules, for example.
03:49But in the end, it doesn't matter much if they sign or not, because the AI Act will prevail anyway.
03:55Some analysts claim that this regulation is basically a strategic positioning of the EU
04:02that wants to be perceived as the most trustworthy AI provider.
04:08The USA is highly critic of this approach, so what can come out of these conflicting positions?
04:17Well, it's not only Europe, I think, that's regulating.
04:19China and the US are doing the same.
04:21I think they just take a more sectoral approach instead of more horizontal that the EU is doing.
04:28I think the big difference is really investment in the end.
04:31It's mostly China and the US that have a lot of private investment.
04:35Europe is trying to catch up and they try to mobilise private and public funding,
04:41for example for gigafactories, where they train these AI models.
04:46This code establishes rules on three main aspects.
04:49Copyright, solutions to respect the intellectual property of creative works,
04:54such as images and academic essays.
04:56Standards for avoiding systematic risks of advanced AI models.
05:01One example would be development of chemical or biological weapons.
05:05And transparency, requiring companies to complete a form on how they comply with the AI law.
05:10Our guest is Laura Lázaro Cabrera, a council at the Centre for Democracy and Technology.
05:17Denmark, which currently holds the presidency of the EU, wants to simplify the AI Act and other digital rules.
05:28Could this legislation become an empty promise?
05:33The AI Act is already the result of several years of protracted negotiations and hard-fought compromises.
05:40Every sentence in the AI Act, every word is in there for a reason.
05:45So to say that simply a lot of the AI Act can be done away with,
05:50there can be removed, some sections amended, would be a mistake.
05:54The United States leads the private investment in AI, which is more than ten times the EU's investment.
06:03Beyond the regulation, do you think that the EU is financially committed to providing safer models of AI?
06:12The EU has made great strides towards strengthening the financial support that it provides to AI development in Europe.
06:19Just this year, over €200 billion have been announced for AI investment.
06:25We think that finances are an important part of the equation, and indeed it is important for the EU to maintain a leadership role in the development of AI.
06:34But we think that that leadership has to be tied to a strong safety framework that promotes fundamental rights,
06:41and that promotes people-centred AI systems.
06:45Deepfakes, theft of confidential data, suicides linked to the use of chatbots are some examples of the risks, the dangers of generative AI.
06:56So in addition to regulating companies, should governments also provide awareness to citizens, training about how to use these tools?
07:10Absolutely. One key element of the AI Act is this notion of AI literacy.
07:16But the obligations around AI literacy are aimed at companies developing AI and companies deploying AI.
07:24We need to see similar approaches building at EU-wide level, targeted this time at people.
07:31Just as the industrial revolutions driven by steam power and the internet impacted different sectors,
07:38so too will AI affect many areas, from defence to life science to energy and manufacturing.
07:46However, as with those revolutions, there are risks to consumers, the environment and the rule of law.
07:52Can the legislation keep up with this lightning-fast innovation?
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