The rise in the use of artificial intelligence was unstoppable last year and was accompanied by breakthroughs, experiments, successes and slip-ups. In no time, 100 million people worldwide started playing with ChatGPT every week. Sam Altman, co-founder of OpenAI, grew from unknown to figurehead of the latest technological revolution. And that storm will not subside this year. With one big difference. The world of artificial intelligence will be less lawless Wild West. And that is due to the persistent action of the European institutions, which negotiated the AI Act at the end of last year.
That is groundbreaking. Experts have been wondering for some time: who is able to regulate AI? Given the complexity of technological development, and the social change and potential disruption it entails, it was clear that only the bigwigs would be able to impose rules on the sector. Was China going to do it? The United States? Ultimately, the European Union was the most decisive.
The total package that was completed in December is solid. Artificial intelligence is being restricted in such a way that a dystopian society is made impossible. Untargeted facial recognition systems, social credit scores, AI tools that manipulate emotions and undermine free will at work or school are banned. New supervisory and advisory bodies will also be established to keep a handle on future developments.
And, crucially, a fine regime will apply according to a proven Brussels recipe. Companies that violate the AI Act could receive bills of up to 7 percent of their global turnover, depending on the offense. That hurts, even if you are a tech giant from California.
The AI Act is not perfect and there will be loopholes, but the EU does use its market power (448 million relatively wealthy consumers) and goes further than its geopolitical competitors. That is not the first time. Through the Digital Services Act, which came into effect in 2022, the EU regulated the working of the largest tech platforms such as Google, Meta, TikTok and the only game in town is for serious regulation of tech companies.
This is important for all Europeans, for the protection of their privacy and fundamental rights, and for the quality of democracy. It is also a boost for the EU itself in the run-up to European and national elections this year, where Eurocritical right-wing parties are expected to do well.
But is regulating American technology enough for the EU to survive in the longer term in a world where deglobalization is a phenomenon and strategic autonomy more than a buzzword? No, is the succinct answer.
French President Emmanuel Macron criticized the AI Act. Too many rules, too little attention to innovation, was the core of his criticism. This was partly an example of modern industrial policy. He stood up for the interests of the French Mistral, a six-month-old start-up with about twenty employees, but with an estimated value of two billion euros. And Macron also has an important point.
The EU benefits from more companies such as Mistral or Aleph Alpha from Heidelberg. The development of AI applications is too important from a social and business economics perspective to be left entirely to other continents. European AI companies are not nearly as advanced as, for example, OpenAI. While the future of the EU as a prosperous union is best guaranteed as a high-quality knowledge economy. Our own flourishing AI sector is then of great importance.
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