Green light for AI investment! The EU finally relaxes regulations on the tech industry

In order to stimulate investment in the field of artificial intelligence, the European Union is working to reduce technology regulation.

Recently, Henna Virkkunen, the EU's digital policy chief, emphasized in an interview with the UK Financial Times that the EU hopes to "help and support" businesses when applying AI rules, while avoiding "adding more reporting obligations for companies." She stated that Brussels needs to ensure that no additional burdens are placed on businesses.

She also explained that this decision is not due to pressure from American tech giants and the Trump administration, but rather a self-initiated choice by the EU to enhance its competitiveness. Previously, the EU announced a €200 billion AI investment plan at the AI summit, with €20 billion specifically allocated for the construction of AI super factories. The President of the European Commission described this as "the largest public investment in AI in the world, which will unleash more than ten times the private investment."

As a specific measure to relax regulation, the European Commission has announced the withdrawal of the previously planned AI liability directive. Virkkunen also revealed that the AI code of conduct expected to be introduced in April will limit reporting requirements to the scope of existing AI rules.

It is noteworthy that this shift occurs at a time when the U.S. is "pressuring" the EU on technology regulation; Trump had threatened to retaliate against fines imposed by the EU on American tech companies. Last month, according to Global Times, Trump criticized the EU regulatory agencies for investigating tech companies like Apple, Meta, and Google, claiming that such actions against American companies are "a form of taxation." Earlier this week, U.S. Vice President JD Vance also criticized the "heavy international rules" targeting large tech companies at an AI summit in Paris.

However, Virkkunen insisted:

"The motivation for the EU to relax regulations is to enhance its own competitiveness, not to rely on the U.S. We are committed to reducing bureaucracy and red tape."

But she also emphasized that the EU will not weaken the enforcement of rules governing online platforms, which are functioning to ensure a fair competitive environment. She pointed out that so far, large tech companies have largely complied with EU regulations because the EU "is one of the largest markets for American companies":

"We welcome businesses, but we also need to ensure that we protect our values and way of life. Our digital world cannot become a lawless wilderness."

The recently passed EU AI Act categorizes the technology into three classes based on the risks it poses to human health and safety, with higher risk categories requiring more stringent reporting obligations. Powerful AI models like OpenAI's GPT-4 and Google Gemini face additional obligations to be more transparent about how their models are trained