Meta Platforms has declined to back the European Union’s new artificial intelligence code of practice, with the firm’s global affairs chief stating the rules will hurt innovation and place unfair barriers on technology companies.
Meta global affairs head Joel Kaplan wasn’t subtle in expressing the company’s viewpoint. In a LinkedIn post Friday, he stated that Europe is “heading down the wrong path on AI” and blasted the code for creating legal gray areas that would dampen innovation.
The furor is over the EU’s newest effort to control artificial intelligence. The European Commission released the final edition of its code for general-purpose AI models last week, and it is up to each individual firm to join. The rules come into force next month and are designed to complement the sweeping AI Act European legislators approved last year.
Tech Companies Divided on AI Regulations of EU
The EU’s motives are noble enough: raise transparency and safety levels when it comes to AI technology. But Kaplan claims that the code goes far beyond what is actually required, causing issues that will damage established firms and startups that want to create AI-based firms.
“This code introduces a number of legal uncertainties for model developers, as well as measures which go far beyond the scope of the AI Act,,” Kaplan wrote in his LinkedIn blog. He is especially worried that these regulations will “throttle the development and deployment of frontier AI models in Europe” and cause trouble for European firms that would like to develop businesses on the basis of AI technology.
Meta is not alone in resisting these new regulations. It is accompanied by other new voices of technology companies questioning whether the European model of AI governance is too onerous.
ASML Holding and Airbus were two companies that recently signed a letter requesting the EU to suspend the code by two years to allow companies time to learn and prepare in terms of the requirements.
The backlash is indicative of an underlying tension that has existed for a while between how various regions are trying to govern AI. While Europe is most likely to prefer general rules and regulations, firms suggest that over-regulation too soon may place European firms behind others elsewhere.
It must be remembered that not all are taking a cue from Meta. OpenAI, the creator of ChatGPT, last week said it would sign the code of practice. This divergence among leading AI companies indicates that everyone is not on the same page about how to strike a balance between innovation and regulation.
Meta’s AI Act Stance: A Test Case for Tech Regulation
Kaplan brings a great deal of experience to his EU approach criticism. He became Meta’s global affairs chief this year, taking over from Nick Clegg, and has experience in both government service and tech policy.
He was a vice president of U.S. policy at Facebook before joining Meta and also served as a staffer in President George W. Bush’s administration.
The argument over whether to regulate AI is not concluded yet, and whether Meta’s choice not to cooperate with the EU’s code will influence other corporations is yet to be determined. There will be those who will view Meta’s position as a position of principle for innovation, and there will be others who will fight regulatory authority of powerful AI systems.
What is certain is that the technology sector and European authorities are still grappling to find the correct balance between stimulating innovation and safeguarding consumers. The EU’s AI Act is one of the world’s most ambitious efforts to regulate artificial intelligence, but its success will depend on whether businesses view it as useful guidance or overbearing bureaucracy.
While next month these regulations will take effect, it will be fascinating to see how many other firms will follow the lead of Meta and steer clear, or whether most will determine it’s not worth it to go through the headaches of compliance. Either way, the battle over how to regulate AI technology has only just begun.
