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Narrower Definition of AI in EU's Artificial Intelligence Act Could Offer Cost Savings and Enhanced Clarity
The European Union's Artificial Intelligence Act (AIA) has proposed a new definition of an "AI system" that has sparked discussions regarding its potential impact on the European economy and the technology sector. The broad definition, which encompasses a wide array of software, has been criticised for its potential to overregulate non-AI software and models.
Recently, a report has suggested a narrower definition of AI under the AIA, focusing on systems that truly demonstrate autonomous inference and adaptability. This narrower approach could significantly alter the scope of what counts as an AI system subject to regulation.
By adopting a more focused definition, the AIA could decrease regulatory burden and compliance costs for many businesses. This is because simpler or less autonomous tools would no longer fall under the purview of the Act. The narrower definition would also enhance clarity and predictability for companies in determining whether the AIA applies to their products or services.
Furthermore, a narrower definition of an "AI system" could potentially lower overall costs for the European economy, as fewer systems would require costly high-risk AI compliance measures. This is particularly important given the EU's ambitious Digital Decade goals, as a broader definition could potentially harm these ambitions.
The report does not specify the exact criteria for a narrower definition of AI, nor does it provide a timeline for any potential changes to the AIA's definition of AI. Additionally, it does not detail the potential industries or software applications that would no longer be regulated under a narrower definition.
Designated "high-risk" sectors will still be subject to a long list of rules in the AIA, which regulates how firms can design, train, and deploy AI systems in these sectors. The law's definition of AI is critical as it determines which software applications must abide by these obligations.
The report does not discuss the potential implications for firms currently operating in the "high-risk" sectors under the broad AIA definition. However, a narrower definition could help avoid such damage to the European Commission's Digital Decade ambitions, making the AIA more appropriately targeted.
The report is available for reading, providing a valuable resource for businesses and policymakers alike as they navigate the evolving landscape of AI regulation in the European Union. By focusing on genuine AI systems and reducing unnecessary economic costs, the AIA can strike a balance between trustworthiness, fundamental rights protection, and innovation.
- The narrower definition of an "AI system" in the European Union's Artificial Intelligence Act could lead to cost savings for businesses due to a decreased regulatory burden and compliance costs, as simpler or less autonomous tools may no longer fall under the Act's purview.
- A focusing on genuine AI systems encompassing autonomous inference and adaptability, rather than a broad definition encompassing a wide array of software, could potentially lower overall costs for the European economy, as fewer systems would require costly high-risk AI compliance measures.
- The adoption of a more focused definition under the AIA would enhance clarity and predictability for companies, as they could determine with greater ease whether or not the Act applies to their products or services, thereby fostering innovation in artificial-intelligence technology.
