AI regulation accord reached by Germany, France, and Italy

Business
2 min read

France, Germany, and Italy have reached a consensus on artificial intelligence (AI) regulations, revealed a joint paper obtained by Reuters.

The trio supports voluntary commitments that would be applicable to both small and large AI providers in the European Union (EU) who choose to adopt them.

This agreement would speed up discussions at the European level, involving the European Commission, the European Parliament, and the EU Council as they determine the bloc’s stance on AI regulation.

European Parliament proposed ‘AI Act’ in June

In June, the European Parliament introduced an “AI Act” with the goal of managing the risks associated with AI applications and preventing discriminatory effects while promoting AI innovation.

During the discussions, it was suggested that the code of conduct should initially be mandatory only for major AI providers, primarily those from the United States (US).

However, the three EU governments contended that this could diminish trust in smaller European providers and lead to a decline in their customers.

Binding rules of conduct and transparency for all providers

The joint document reportedly proposes that all AI providers should be subject to binding rules of conduct and transparency.

Initially, no penalties would be enforced, but if violations are discovered after a certain period, a sanctions system could be put in place.

A European authority would be responsible for overseeing adherence to these standards in the future.

Germany’s Economy Ministry stressed that laws and governments should regulate AI applications rather than AI itself.

Balancing opportunities and risks in AI regulation

Franziska Brantner, German State Secretary for Economic Affairs, told Reuters it was essential to capitalize on the potential of AI while minimizing risks.

“We have developed a proposal that can ensure a balance between both objectives in a technological and legal terrain that has not yet been defined,” Brantner said.

Digital Affairs Minister Volker Wissing also expressed satisfaction with the agreement between France and Germany to regulate AI usage, stating, “We need to regulate the applications and not the technology.”