The AI sector is a small one, and some governments are keen to monitor just how small it is.
In order to determine if the AI business permits enough competition, four regulatory agencies from the EU, the UK, and the US have produced a joint declaration of purpose. The European Commission, the U.K. Competition and Markets Authority, the U.S. Department of Justice, and the U.S. Federal Trade Commission are the four organizations.
The statement makes no mention of the establishment of a new regulatory organization or of any broad regulations.
“Our choices will always be independent and sovereign,” the declaration says. However, the groups stated that some cooperation is necessary due to the fact that the hazards associated with the AI business do not “respect international boundaries.”
What is stated in the joint statement?
By enforcing greater obstacles to entry, limiting customer choice, and entrenching current AI firms in ecosystems, the statement aims to mitigate dangers to competition. The statement’s wording leaves room for further existential threats as well: AI might be developed or applied in ways that negatively impact customers, business owners, or other market participants.
Limited availability to chips and tight cooperation amongst major firms present further obstacles for the AI sector. The CMA has until September to determine whether to look into the possibility of moving important Inflection AI personnel to Microsoft in relation to the latter.
The joint statement, which is unrelated to any particular research project or artificial intelligence company, proposes that these problems can be resolved by adhering to the following established guidelines:
- “Fair dealing” (as opposed to “exclusionary tactics”).
- Interoperability.
- Choice.
According to a press statement from CMA Chief Executive Sarah Cardell, AI is a borderless technology that has the potential to drive innovation and growth, delivering transformative benefits for people, businesses, and economies around the world. For this reason, they have united with the supporters in the EU and the US to declare their commitment to ensuring that legitimate, transparent, and competitive AI fosters development and constructive social change.
What does the joint statement mean for business?
Part of the continuous wrangling between governments and the rapidly expanding AI sector is the joint statement. Due to what the Facebook parent company describes as a lack of clarification from the EU about GDPR privacy standards, Meta decided not to release multimodal AI products in the EU.
Concurrently, the European Commission is looking into some of the biggest tech firms in the world for “gatekeeping” software in accordance with the Digital Markets Act.
With tools for startups and requirements for enterprises to publish AI-generated content and give a risk level to AI systems, the European Union AI Act is scheduled to take effect on August 1.
The companies using AI products in the EU or the major AI manufacturers are most likely to be impacted. More broadly, though, is the question of whether both sides can strike a balance between safeguarding users’ privacy (particularly with regard to lifelike AI photos that can propagate false information) and giving growing businesses an opportunity to shake up the market.
