EU implements AI Act provisions to boost competitiveness, limit risks

As of February 2024, key provisions of the European Union's AI Act aimed at mitigating unacceptable risks, such as social scoring and facial recognition scraping, have taken effect. In a strategic shift, the EU is reducing tech regulation to boost competitiveness in the AI sector, denying that this change is influenced by U.S. pressure, particularly from the Trump administration. Henna Virkkunen, the EU’s digital chief, emphasized the need to simplify regulations and cut bureaucratic burdens to foster innovation while maintaining essential enforcement of existing rules. The EU has also withdrawn the AI Liability Directive, which would have facilitated consumer lawsuits regarding AI-related harms, as part of its deregulatory strategy. This comes amidst calls from U.S. officials for Europe to embrace the AI opportunity and adapt its regulatory approach. The EU's focus is on ensuring a balanced framework that promotes growth in AI technology while safeguarding against potential abuses.