US and Chinese firms hoping to deploy artificial intelligence and other technology in Europe will have to submit to a slew of new rules and tests under the European Commission’s proposed AI and digital strategy.
“The European Union is and will remain the most open region for trade and investment in the world, but this is not unconditional,” the European Commission said in a statement on Wednesday. “Everyone can access the European market as long as they accept and respect our rules.”
The move is the latest attempt by the EU to leverage the power of its vast, developed market to set global standards that companies around the world are forced to follow. The proposed legislation is designed to help Europe compete with the US and China’s technological power while still championing EU rights. The commission is also expected to overhaul rules around legal liability for platforms, like Facebook Inc and Twitter Inc, later this year.
On artificial intelligence, users and developers of AI systems used in high-risk fields, such as health, policing or transportation, would face legal requirements, including tests by authorities, who could also certify the data used by algorithms, the EU said. High-risk AI could also face sanctions, while lower-risk applications should abide by a voluntary labelling program, the body said.
Facial recognition, which falls under the high-risk category, generally can’t be used for remotely identifying people under current EU rules, though the bloc is planning to start a debate on the topic to determine where European citizens would accept exceptions.
The EU also said it would propose plans to encourage data sharing among businesses and with governments, with the aim of pooling large sets of high-quality industrial data. The AI plans will be open for public consultation until late May and will aim to propose legislation based on the feedback as soon as the end of year.
US Chief Technology Officer Michael Kratsios encouraged the EU to “pursue an innovation friendly” approach that doesn’t overly burden companies in a statement reacting to the EU’s announcement. “The best way to counter authoritarian uses of AI is to ensure the US and its allies remain leaders in innovation,” he said.
The EU will also propose a Digital Services Act later this year to “strengthen the responsibility of online platforms and clarify rules for online services.” The debate around who’s liable for content on social media sites and other platforms has gained steam around the world amid the spread of disinformation, hate speech, and violent content.
Under current EU rules, tech companies aren’t responsible for what users post on their sites unless illegal content has been flagged to them. The rules were drafted almost 20 years ago in an effort to encourage tech firms to grow and innovate, and companies worry that axing the provision could potentially force them to censor posts. “We ask the commission to tread carefully as they look at how to tackle issues that will ultimately determine the future of tech,” said Raegan MacDonald, head of EU public policy at Mozilla Corp. “Instead of seeing tech as all the same — which it is not — the EU needs to be clear which companies and what practices and processes should be the focus of intervention.”
Facebook Chief Executive Officer Mark Zuckerberg met with EU officials in Brussels on Monday as he called on governments to devise a different system for platforms — somewhere between newspaper publishers, who can be sued for what journalists write in their pages, and telecommunications companies, who aren’t liable for customer conversations.
European Industry Commissioner Thierry Breton dismissed Zuckerberg’s framing, saying his comparison to telecom companies was “not relevant.” The comment suggests the EU could lean toward much more onerous requirements on liability for the platforms.
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