Digital Economy

'EU changes course on Ai and data'. The appeal of companies and research

Meta, in an open letter published, brings together dozens of leading European companies to ask EU legislators to promote new, less restrictive rules on Ai

by Luca Tremolada

Conceptual technology illustration of artificial intelligence. Abstract futuristic background

5' min read

5' min read

Meta, in an open letter published in major newspapers, brings together several dozen of Europe's leading companies to ask lawmakers to promote new, less restrictive rules on artificial intelligence. 'A change of course,' they write, 'in order not to be excluded from the great benefits of an open technology capable of accelerating economic growth and research'.

Among the signatories of the document addressed to European legislators and regulators - including EssilorLuxottica, Prada, Pirelli, Exor Group and Spotify - are also names from research and companies such as Engineering, Ericsson, Nicolò Cesa-Bianchi (University of Milan), Eugenio Valdano, PhD (Sorbonne/Inserm.).

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Already at the end of August, Mark Zuckerberg, who financed the publication of the letter, had intervened in person in the weekly magazine The Economist against the EU's restrictive policies, describing them as risky at a time in history when losing the AI train could jeopardise the future.

This message has been picked up and relaunched by an important part of the European business community, which writes: 'Europe is faced with a decision that will have consequences for the continent for decades. It can choose to reaffirm the principle of harmonisation enshrined in legal frameworks such as the GDPR and offer a modern interpretation of its provisions that still respects its core values, thus allowing innovation in AI to develop here with the same scope and speed as in other regions of the world. Or, it can continue to reject progress, contradict the ambitions of the single market, and stand by while the rest of the world develops technologies that European citizens will not have access to'.

The role of Meta and open source systems

The letter, in particular, focuses on the goodness and attractiveness for Europe of open source models - Meta's Llama is among them - and multimodal models, which represent an evolution of text chatbots. We are talking about software that marks an evolutionary leap, as it allows images, video and audio to be processed. As if to say, in addition to 'talking', these large language models are also acquiring other 'senses'. A few months ago, Meta had decided not to offer its next multimodal artificial intelligence model and future versions to customers in the European Union, citing a lack of clarity on the part of regulators in Brussels. The Irish Data Protection Commission (DPC), Ireland's data protection authority, had in July asked Meta to delay training large language models (LLMs) using public content shared by European adults on Facebook and Instagram.This decision came as a surprise to Meta, as initially the DPC, which regulates GDPR enforcement in the EU as many global tech giants, including Meta, Google and Apple, have their European headquarters in Ireland, had given the green light to the company's AI in Europe.

European fragmentation

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In the crosshairs of Zuckerberg, however, and also of Big Tech, there does not seem to be only the AI Act, which is never mentioned directly in the letter. But the entire complex regulatory apparatus built under the presidency of Ursola Von Del Leyen, who recently presented her new team at the helm of the European Commission. In recent years, the EU has established a series of regulations to counter the dominance of Big Tech. In addition to the Digital Services Act (DSA) currently in force, there are the Digital Markets Act (DMA), the Data Governance Act (DGA) and the Data Act, which regulate the protection of data and its use in the public and private sector. To this list are also added the updated cybersecurity package, Nis2, the Digital Operational Resilience Act (DORA), dedicated to the world of finance and insurance, and the digital identity package, contained in Eidas 2.Fragmented European regulation, the letter says, is hampering innovation and discouraging developers, jeopardising the continent's ability to capitalise on the huge opportunity offered by open source artificial intelligence. Europe's ability to generate competition is at stake. Meta believes that the next generation of ideas and startups will be built on open source artificial intelligence, as it allows developers to incorporate the latest innovations at low cost and gives institutions greater control over their data.

The fears of the companies that signed the appeal

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The fear expressed by companies is that the regulation, which will come into force after a transition period of about 1-2 years, could deprive European companies and start-ups of a technology that, according to the latest research, could contribute at least 10% of global GDP over the next decade. Indeed, it should be noted that not only Meta, but also Apple and Google have decided to postpone the launch of their new technologies, citing the lack of regulatory clarity as the reason.

The European statup node.

As far as competition is concerned, at the moment, we read in Il Sole 24 Ore, among the eight most financed AI start-ups in the world, according to the analysis site Statista, there are only two names 'made in Europe': the French Mistral AI and the German Aleph Alpha. Europe's lag in generating technological champions predates the advent of generative artificial intelligence. Search engines, social platforms and cloud computing services continue to be the domain of a group of Chinese-American giants. Result? The small ones fear that compliance costs may be too high, limiting Europe's ability to compete with big tech powers like the US and China, where regulation is less strict. The big guys do not want to waste time and lag behind the big tech's Ai models in order not to lose competitiveness points. The point is that once a dominant position is achieved, Big Tech is tempted to abuse it. Safeguarding competition in digital technologies is complex, and in the end competition is only protected if real competitors exist and grow.

The hardware node.

However, the AI Act envisages an investment package for innovation in the field of AI, aimed at providing computing power to start-ups and small and medium-sized enterprises in the sector, to support the development of their systems and close the gap with the US. The model is that of so-called 'AI factories', i.e. ecosystems that aggregate industry experts, new talent and data around supercomputers. The Commission plans to provide financial support through Horizon Europe and the Digital Europe programme, which is dedicated to generative AI, realising a public and private investment of around EUR 4 billion until 2027. Hardware is missing. The boom in demand for chips is lengthening the timeframe, and Intel's decision to disinvest from Europe could put the Chip Act, which aims to make Europe autonomous in terms of microchip production, in serious trouble. Europe's real problem is its processing capacity and computing power, which is not comparable to that of Big Tech.

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  • Luca Tremolada

    Luca TremoladaGiornalista

    Luogo: Milano via Monte Rosa 91

    Lingue parlate: Inglese, Francese

    Argomenti: Tecnologia, scienza, finanza, startup, dati

    Premi: Premio Gabriele Lanfredini sull’informazione; Premio giornalistico State Street, categoria "Innovation"; DStars 2019, categoria journalism

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