Regulation Isn't Stifling European Innovation, EU AI Office Chief Says
Regulation doesn't block Europe from leading in AI innovation, but fragmentation in areas such as employment and the capital markets makes it harder to scale up, EU AI Office Director Lucilla Sioli said Thursday on a Center for Strategic & International Studies webinar.
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There's no trade-off between regulation and innovation, Sioli argued. Trust in AI is an important part of the innovation process. The EU approach is risk-based, and 90% of the European AI market isn't even regulated, she added.
The EU needs to be better at creating digital ecosystems such as Silicon Valley and Seattle, said Sioli, and it's working on that through the EU AI continent action plan, released in April. The plan considers the infrastructure necessary to develop AI, and proposes AI factories that benefit from Europe's network of supercomputers. It then foresees five gigafactories with massive computing power and data centers.
The proposed gigafactories have sparked interest from more than 76 organizations, including private companies and EU countries, Sioli said. An ecosystem is forming among various actors, she noted. There will be a call for proposals by year's end, with a selection made in 2026, she added.
Asked about possible delays to provisions of the AI Act on high-risk systems due to come into effect in 2026, Sioli noted that the high-risk rules are based on standards. The standards are being developed in various organizations and the process is open to participation from companies around the world, she said.
Standards bodies have until the end of this month to report their progress, she said. If the AI Office feels the standards aren't ready, it will be up to the European Parliament and Council to decide whether to postpone implementation of the provisions.
Much of the EU's AI plan aligns with what the U.S. is doing, Sioli said. Both encourage open source technology, the take-up of AI and the creation of centers of excellence, and both are focused on testing and experimenting before AI is put on the market. The EU and U.S. are also interested in AI's role in science and the economy.
The two blocs are allies, Sioli noted. They shouldn't compete with each other but should invest together to move AI development forward.