The European Union (EU) is scaling back its tech regulations to push investment in artificial intelligence (AI), according to European Commission’s digital policy chief Henna Virkkunen. She, however, added that the move is driven by the bloc’s own competitive ambitions and not pressure from US Big Tech companies or the Trump administration.
Virkkunen told the Financial Times that the EU aims to “help and support” companies navigating AI rules, emphasising the bloc’s desire to boost competitiveness and avoid missing out on the transformative potential of AI. She stressed the importance of minimising reporting obligations for European companies.
The EU’s AI Act classifies AI technology based on risk levels, with higher-risk categories facing stricter reporting requirements. Powerful AI models like GPT-4 and Gemini also face additional obligations, including increased transparency about their training methods.
Brussels needed to ensure “that we are not creating more reporting obligations for our companies”, she said.
While some tech companies have expressed concerns about the upcoming code of practice, Virkkunen asserted that the deregulatory efforts are not a concession to these concerns.
The commission recently withdrew a planned AI liability directive and stated that an upcoming AI code of practice, expected in April, will limit reporting requirements to the scope of existing AI regulations.
“Citizens and businesses have called for a simpler EU that delivers prosperity. This work programme is our answer. We’ve heard you, we’re simplifying, and we will deliver. This roadmap charts our course to a more competitive, resilient, and growth-oriented Europe,” said Ursula von der Leyen, president of the European Commission.
This announcement follows criticism from US officials, including comments made at a recent AI summit in Paris where concerns were raised about international rules targeting Big Tech. However, Virkkunen insisted the EU’s deregulatory push is independent of US influence, stemming instead from the bloc’s own commitment to cutting bureaucracy and red tape.
Virkkunen emphasized that while the EU is open for business, it remains committed to protecting its values and way of life. She affirmed that the EU has no intention of weakening enforcement of its rules governing online platforms, stating that these rules are effective in ensuring a level playing field.
“We are open for business, but we also want to make sure that we are protecting our own values and our way of life. Our digital world can’t be a wild west where there are no rules,” Virkkunen said.
