Tech Experts Urge Smarter AI Regulations for Europe
▼ Summary
– The EU AI Act’s rules for general-purpose AI models are set for August 2, but key stakeholders, including Swedish PM Ulf Kristersson and tech lobbyists, are pushing for a delay due to competitiveness concerns.
– Eoghan O’Neill of the European Commission confirmed plans to finalize GPAI rules in July, emphasizing the need for specific obligations to address potentially harmful AI models.
– Tech leaders argue EU regulations stifle growth, with Axelera AI’s CEO advocating for “EU Inc,” a standardized legal framework to ease cross-border operations for startups.
– Europe lags in scaling startups, with only 8% of global scaleups and no EU-founded company reaching €100bn valuation in 50 years, highlighting a need for more capital and less policy focus.
– Speakers at TNW Conference highlighted Europe’s potential to attract talent and investment, with calls for regulatory adjustments to boost funding and retain returning engineers from the US.
Europe faces a critical juncture in shaping its AI future as debates intensify over balancing innovation with regulation. The upcoming EU AI Act, set to finalize rules for general-purpose AI models in July, has sparked concerns among industry leaders who argue excessive oversight could weaken the region’s technological edge. Swedish Prime Minister Ulf Kristersson, Bosch CEO Stefan Hartung, and tech coalition CCIA Europe, representing giants like Alphabet and Meta, are among those advocating for a more measured approach.
At the recent TNW Conference in Amsterdam, European Commission policy officer Eoghan O’Neill defended the timeline, stressing the need for “specific obligations to address high-risk AI models.” He emphasized the Act’s collaborative drafting process, involving stakeholders from academia, industry, and civil society. Yet critics warn that Europe’s fragmented regulatory landscape, spanning multiple languages and national laws, already stifles growth.
Fabrizio Del Maffeo, CEO of Dutch AI chip firm Axelera AI, highlighted the challenges. “Regulations create invisible borders,” he said, advocating for “EU Inc,” a proposed standardized legal framework to simplify cross-border operations for startups. European Commission President Ursula von der Leyen has endorsed the idea, pitching it as a way to unify corporate and tax laws across the bloc. But Del Maffeo argued scaling existing businesses demands more than policy tweaks, it requires capital.
The numbers reveal a stark gap: Europe claims just 8% of global scaleups, dwarfed by North America’s 60%. No EU-born company has reached a €100 billion valuation in decades, despite the region’s engineering prowess in fields like robotics and automotive. “We lead in innovation but lag in commercialization,” Del Maffeo noted.
Investment disparities further complicate the picture. European startups secured $52 billion in venture funding last year, a fraction of the $209 billion raised in the U.S. Pegasystems AI director Peter van der Putten urged regulatory adjustments to attract foreign capital: “We need to make Europe a magnet for funding flowing out of the U.S.”
Yet there are bright spots. Cradle co-founder Elise de Reus pointed to a reverse brain drain, with European engineers returning from Silicon Valley. “Purpose-driven work and quality of life are pulling talent home,” she said, rejecting GDP-centric metrics for a well-being-focused model. “Europe shouldn’t mimic the U.S. system, we have our own strengths.”
As the EU navigates these tensions, the stakes are clear: over-regulation risks stifling innovation, while under-regulation could compromise safety and competitiveness. The coming months will test whether Europe can strike a balance that fuels growth without sacrificing its values.
(Source: The Next Web)
