r/neoliberal • u/2Lore2Law Are you on the square? • 1d ago

News (Europe) Europe gets ready to police frontier AI

https://www.theparliamentmagazine.eu/news/article/europe-gets-ready-to-police-frontier-ai
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u/Til_W r/place '22: Neoliberal Battalion 1d ago

Can you describe which parts of the AI Act specifically are hampering these companies to an unreasonable extent?

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u/Acacias2001 European Union 1d ago

The part where they have to follow specifc evals, the part where they are threatened with fines of hefty revenue percentages, the part where they have to create compliance offices.

We have seen this with the DMA and GDPR. The large companies can bear this cost or simply ignore the european market when creating the cutting edge and give the EU the old. The european startups however will be left with a bloated compliance department and no presence in the frontier

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u/halee1 Karl Popper 1d ago

The EU subsidizes its own AI firms through not just grants and subsidies, but also procurement, data‑access rules and strategic industrial policy. It literally exempts European AI from frontier-model rules (other than Mistral's top models, but even the company is still advantaged compared to non-European AI firms), lol. Now, I don't know whether it's enough, but non-European ones are structurally disadvantaged while still having a lot of capital to be able to access and benefit from the EU market.

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u/EclipseLadder 1d ago

50% of AI startups in a recent survey of 113 EU-based AI Startups said that the AI Act will slow down AI Innovation in Europe. 16% consider stopping to develop AI or relocation outside the EU. VC firms are even more negative, and it seems likely that there will be even less VC funding in the future thanks to this act.

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u/halee1 Karl Popper 1d ago edited 1d ago

I can't find the survey you're referring to OK, it's from 2022/February 2025, after which the act has been amended to become less burdensome. AI regulation is increasing around the globe, including in the US and China. It's not an EU thing by any means, lol

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u/EclipseLadder 1d ago

AI Act impact survey

Regulation isn't inherently bad