Big Tech Executives Warn Europe’s New AI Law Could Stifle Innovation

Top executives from Amazon and Meta have raised concerns that the European Union’s new AI regulations could hamper technological innovation. The EU approved its AI Act this week, coinciding with the VivaTech conference in Paris, where industry leaders gathered to discuss the future of technology.

The groundbreaking AI law aims to regulate the use of artificial intelligence across Europe, affecting sectors from healthcare to law enforcement. It bans AI applications deemed “unacceptable,” such as social scoring, and mandates increased transparency and disclosure for high-risk AI uses, including education and hiring.

Yann LeCun, Meta’s chief AI scientist, questioned whether AI research and development should be regulated at all. “There are clauses in the EU AI Act that do regulate research and development. I don’t think it’s a good idea,” he told CNN at the conference. LeCun, known as one of the “godfathers of AI,” argued that fears of AI surpassing human intelligence are premature. “AI systems might become a lot smarter in the future, but then they will be designed with appropriate safeguards,” he said.

Werner Vogels, Amazon’s chief technology officer, echoed LeCun’s concerns, suggesting that regulation should vary based on the application of AI. He emphasized that areas like healthcare and financial services should be regulated differently from less critical uses, such as meeting summarization. “There’s a whole range of areas where I think the risks are minimal and we should let innovation run there,” Vogels said. He warned against overregulation, citing the complexity of the EU’s General Data Protection Regulation (GDPR) as an example.

Both executives stressed the importance of maintaining a balance between regulation and innovation. Vogels noted that Amazon supports regulation but cautioned that it should be manageable for all companies, not just the largest ones. “We need to make sure that innovation continues to happen and that the innovation doesn’t just come outside Europe,” he said, highlighting Europe’s historical underinvestment in research and development.

The debate over the AI Act highlights the ongoing tension between ensuring safety and fostering innovation in rapidly evolving technological landscapes.