Industry Concerns Mount Over EU’s Draft AI Code

EU Draft AI Code Faces Industry Pushback

The draft Code of Practice on General-Purpose Artificial Intelligence (GPAI) has recently sparked considerable debate within the tech industry as it aims to assist AI companies in aligning with the EU’s AI Act. The draft focuses on several critical areas, including transparency, copyright, risk assessment, and mitigation.

Key Concerns Raised by the Industry

Industry representatives have expressed serious concerns regarding the newly released draft. They argue that the proposed rules may hinder innovation by imposing burdensome requirements that extend beyond the original AI Act’s scope. Among the most contentious points are the mandatory third-party risk assessments that must be conducted both before and after deployment, which many view as unnecessary.

Copyright Issues

Copyright obligations are at the forefront of the industry’s pushback. Organizations such as News Media Europe have voiced their concerns that the draft fails to respect existing copyright laws. They argue that AI companies should not merely be expected to make ‘best efforts’ to avoid using content without proper authorization. This issue is particularly pressing as AI technology increasingly interacts with content creation and distribution.

Fundamental Rights Risks

Another significant criticism of the draft is its perceived inadequacy in addressing fundamental rights risks. Experts contend that these risks should be a primary concern for AI model providers, yet the draft does not sufficiently address them. This oversight could lead to potential violations and ethical dilemmas in AI deployment.

Next Steps and Feedback Period

The draft is currently open for feedback until 30 March, with a final version expected to be released in May. The timeline raises questions regarding the European Commission’s ability to formalize the Code under the AI Act, which is set to come into full effect in 2027. The ongoing discussions and feedback will play a crucial role in shaping the final regulations.

As the debate unfolds, the issue of copyright in relation to AI is also being closely examined by the European Parliament. The outcome of these discussions could have significant implications for the future of AI innovation and regulation in Europe.

More Insights

Tariffs and the EU AI Act: Impacts on the Future of AI Innovation

The article discusses the complex impact of tariffs and the EU AI Act on the advancement of AI and automation, highlighting how tariffs can both hinder and potentially catalyze innovation. It...

Europe’s Ambitious AI Sovereignty Action Plan

The European Commission has unveiled its AI Continent Action Plan, a comprehensive strategy aimed at establishing Europe as a leader in artificial intelligence. This plan emphasizes investment in AI...

Balancing Innovation and Regulation in Singapore’s AI Landscape

Singapore is unveiling its National AI Strategy 2.0, positioning itself as an innovator and regulator in the field of artificial intelligence. However, challenges such as data privacy and AI bias loom...

Ethical AI Strategies for Financial Innovation

Lexy Kassan discusses the essential components of responsible AI, emphasizing the need for regulatory compliance and ethical implementation within the FinTech sector. She highlights the EU AI Act's...

Empowering Humanity Through Ethical AI

Human-Centered AI (HCAI) emphasizes the design of AI systems that prioritize human values, well-being, and trust, acting as augmentative tools rather than replacements. This approach is crucial for...

AI Safeguards: A Step-by-Step Guide to Building Robust Defenses

As AI becomes more powerful, protecting against its misuse is critical. This requires well-designed "safeguards" – technical and procedural interventions to prevent harmful outcomes. Research outlines...

EU AI Act: Pioneering Regulation for a Safer AI Future

The EU AI Act, introduced as the world's first major regulatory framework for artificial intelligence, aims to create a uniform legal regime across all EU member states while ensuring citizen safety...

EU’s Ambitious AI Continent Action Plan Unveiled

On April 9, 2025, the European Commission adopted the AI Continent Action Plan, aiming to transform the EU into a global leader in AI by fostering innovation and ensuring trustworthy AI. The plan...

Updated AI Contractual Clauses: A New Framework for Public Procurement

The EU's Community of Practice on Public Procurement of AI has published updated non-binding AI Model Contractual Clauses (MCC-AI) to assist public organizations in procuring AI systems. These...