EU unveils bold AI strategy to compete with US, China

CNBC reveals in a recent article that the EU unveiled a bold strategy aimed at boosting its artificial intelligence (AI) sector and positioning itself to better compete with the US and China. 

The move comes in response to growing concerns from tech industry leaders who argue that the EU’s regulatory framework is too complex and stifles innovation.

The European Commission, the EU's executive body, announced its "AI Continent Action Plan," which aims to transform Europe’s traditional industries and exceptional talent pool into powerful drivers of AI innovation. The Commission highlighted that the plan will foster Europe’s capacity to scale AI across sectors and drive the development of new technologies that can compete on a global stage.

A major component of the plan involves the construction of AI factories and "gigafactories," along with specialized labs designed to improve access to high-quality training data for AI startups. These AI factories will be large-scale facilities that house state-of-the-art chips essential for developing the most advanced AI models.

In addition, the European Union will establish an AI Act Service Desk, a new initiative designed to help businesses across the region comply with the EU’s landmark AI legislation. The Commission stated, “The AI Act raises citizens’ trust in technology and provides investors and entrepreneurs with the legal certainty they need to scale up and deploy AI throughout Europe.” The AI Act Service Desk will serve as a hub for information and guidance regarding the regulations.

The new strategy bears similarities to the United Kingdom’s recently announced AI Action Plan, which also includes plans to expand AI infrastructure in support of local developers. Both regions are seeking to enhance their AI capabilities and infrastructure to nurture innovation.

However, the EU’s AI strategy comes at a time of mounting criticism from tech leaders, who claim that the region’s rules on AI and other industries like taxation present significant barriers for startups. The EU’s AI Act, in particular, has been a point of contention, as it regulates AI applications based on their societal risk levels. The law has been updated to include "foundational" model developers like OpenAI and French startup Mistral, sparking frustration among some of the industry's most prominent players.

At a global AI summit in Paris earlier this year, OpenAI's Chief Global Affairs Officer Chris Lehane voiced concerns about the EU’s regulatory approach. Lehane stated that European political and business leaders are becoming increasingly worried about falling behind in AI development, with some advocating for a shift in focus away from managing risks toward embracing innovation.

“There’s almost this fork in the road, maybe even a tension right now between Europe at the EU level... and then some of the countries,” Lehane said. “They’re looking to maybe go in a little bit of a different direction that actually wants to embrace the innovation.”

The U.S. administration has also expressed concerns, particularly over the treatment of American tech giants and fast-growing AI startups. U.S. Vice President JD Vance criticized Europe’s regulatory stance at the Paris summit, urging European leaders to approach AI “with optimism rather than trepidation.”

John Buyers, global head of AI at the law firm Osborne Clarke, commented on the EU’s new plan, saying that it reflects a real push to ease regulatory burdens and foster innovation. “There is a real emphasis on easing the burden of regulation and removing barriers to innovation, which in part is likely to reflect some of the concerns that have been raised by the US government,” Buyers said.

He added, “This isn’t only about the EU: If they are serious about eliminating legal uncertainties caused by interpretation of the EU’s AI Act, then this would be a real boost for AI developers and users in the UK and the US, as the AI Act applies to all AI used in the EU, regardless of where sourced.”

As the EU strives to strike a balance between regulation and innovation, its latest plan reflects the urgency of harnessing AI’s potential while addressing concerns over legal uncertainties.

By Naila Huseynova