EU rolls out bold plan to curb unstoppable AI giants
EU Faces Pressure to Postpone Implementation of AI Law
Brussels has come under intense scrutiny as stakeholders urge a delay in enforcing the bloc’s flagship AI regulations, which are set to take effect on August 2 for sophisticated, general‑purpose models that offer a wide range of functions.
Background and Gradual Rollout
- The AI law entered force last year, but its various obligations will be applied progressively.
- European tech firms and prominent U.S. Big Tech companies are lobbying for a slowdown, arguing that rapid enforcement could hinder the EU’s competitiveness compared to the United States and China.
Commission’s Response and Code of Practice
The European Commission, the digital watchdog of the bloc, has resisted calls for a postponement.
The EU’s executive authority has now published a code of practice for general‑purpose AI models, crafted by independent experts with input from model providers.
Key recommendations include excluding known piracy websites from data models, ensuring transparent data usage, and conforming to EU copyright standards.
Scope of Application
The code targets cutting‑edge AI systems such as Google’s Gemini, Meta’s Llama and X’s Grok—a chatbot developed by tech mogul Elon Musk that recently faced criticism for antisemitic remarks.
Mandatory Disclosure
Developers of these models must disclose the content used—text, images, and other training materials—to comply with EU copyright law.
Industry Pushback and Pending Endorsement
The code, initially slated for publication in May, has been accused of being watered down due to industry pressure.
Corporate Europe Observatory and Lobby Control, in April, alleged that Big Tech “heavily” influenced the process to weaken the code.
Before companies can voluntarily sign up, the code requires endorsement by EU states. Those who sign will benefit from a reduced administrative burden and increased legal certainty compared to other compliance methods, the commission stated.
Corporate Campaign for Pause
Nearly 50 of Europe’s largest corporations—including France’s Airbus, Dutch tech giant ASML, Germany’s Lufthansa and Mercedes‑Benz—urged a two‑year pause last week.
CEO letters accused the EU’s complex rules of jeopardizing the 27‑country bloc’s AI ambitions and the development of European champions.
Timeline and Compliance Obligations
The EU will enforce rules for general‑purpose AI models a year from August 2 for new models, while existing models will have until August 2027 to comply.
