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.

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