EU Regulation on Artificial Intelligence (AI) and Its Global Impact

EU Regulation on Artificial Intelligence (AI) and Its Global Impact

Global companies and European digital associations are speaking out against the European Union’s efforts to finalize its AI regulation by the end of the year. They argue that “over-regulation can stifle business growth” and express concerns about the EU’s AI legislation.

Introduction

The European Union (EU) is currently in the process of finalizing the world’s first regulation on Artificial Intelligence (AI) by the end of this year, and the approval or rejection of this regulation is having a significant impact on the global digital market. Major global corporations such as Google, Apple, Ericsson, Airbus, LSE, SAP, and 32 digital-related associations within Europe have expressed their opposition to this regulation, arguing that “excessive regulation should be avoided.”

Main Points

1. Potential Impacts: Utilizing AI-Based Models and GPAI
   • Both the EU and global companies emphasize the need for Europe to become a global digital powerhouse by utilizing AI-based models and General Public Artificial Intelligence (GPAI) to lead AI innovation. They argue that regulations should be limited to allow companies pioneering these innovations to thrive within Europe.
2. Potential Impacts: Price Volatility
   • Approval of AI regulation is expected to increase price volatility. The cryptocurrency market has been influenced by various factors so far, and the introduction of investment methods such as ETFs is likely to affect supply and demand, potentially leading to increased volatility.
3. Potential Impacts: Institutional Investor Participation
   • Approval of AI ETFs may attract institutional investors, which could significantly impact market dynamics. Institutional investors manage substantial funds, and the activation of cryptocurrency investments through ETFs could enhance market stability.
4. Potential Impacts: Regulation and Legal Issues
   • Approval of AI regulation may conflict with existing laws and raise new legal issues, particularly in areas related to copyright. Companies will need to prepare for new regulations and legal disputes.

Conclusion

The approval of AI regulation is a crucial decision considering both the innovation and stability of the digital market. While the EU aims to finalize this regulation by the end of this year and implement it from 2026, negotiations are ongoing. Decisions on regulation should consider the changes and stability of the digital market, making ongoing dialogue and cooperation between companies and governments more critical than ever.