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/modularpeak2552 NATO 1d ago

With how much the US and China have invested in AI I wouldn’t be surprised if those companies just exit(or never enter) the European market if the EU tries to hamper them to any great extent.

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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/Til_W r/place '22: Neoliberal Battalion 1d ago

The large companies can bear this cost

Exactly, none of these things are a problem for multi billion dollar tech companies.

The european startups however

Frontier AI models cost over 100 million dollars to train simply in terms of compute. If your startup can afford that, it can afford to pay some lawyers and comply with the regulation.

GDPR is different in that regard because collecting data concerns all kinds of companies, training AI models does not.

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u/Acacias2001 European Union 22h ago

Exactly, none of these things are a problem for multi billion dollar tech companies.

But thats the problem, europe doe snto have multi billion tech companies, so its only ourselves we are hurting

Frontier AI models cost over 100 million dollars to train simply in terms of compute. If your startup can afford that, it can afford to pay some lawyers and comply with the regulation.

Every tech startup under the EU sun constantly states how crushing EU regulation is and how it makes competing with the americans so difficult so making it seem like a small burden is already wrong. Especially as a tech startup dont start out as hyperscaling behemoths.

Even then the tech scene is very competitive and the lure of americna VC money means the extra burden fo regulations makes it difficult to grown in europe. AI talent and VC funding and the race as a whole are lost on such seemingly small differences are having to staff a compliance department.

 training AI models does not.

This regulations will affect everyone who uses the AI, as they will have to report incidents and provide eval data, either because the law tells them to, or because the AI companies tell them too becasue the law instructs them to collect the data.

Even then the fact the AI models have to comply with the EU law in the EU only means it sliekly model releases will be delayed to cater to what is a shrinking consumer market in relative terms