Meta Refuses to Sign EU's AI Code of Practice, Sparking Debate on AI Regulation

Reviewed byNidhi Govil

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Meta declines to sign the European Union's voluntary AI code of practice, citing legal uncertainties and overreach, while other tech giants consider compliance with the upcoming AI Act.

Meta's Refusal and EU's AI Code of Practice

Meta, the tech giant behind Facebook, has refused to sign the European Union's voluntary AI code of practice, just weeks before the bloc's AI Act is set to take effect. Joel Kaplan, Meta's chief global affairs officer, stated, "Europe is heading down the wrong path on AI," arguing that the code introduces legal uncertainties and measures beyond the scope of the AI Act

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Source: engadget

Source: engadget

The EU's code of practice, published earlier this month, aims to help companies implement processes and systems to comply with the bloc's upcoming AI legislation. It requires companies to provide and update documentation about their AI tools, bans the use of pirated content for AI training, and mandates compliance with content owners' requests regarding data set usage

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The EU AI Act and Its Implications

The AI Act, a risk-based regulation for AI applications, is set to take effect on August 2. It categorizes AI uses into risk levels, banning some "unacceptable risk" cases outright and defining "high-risk" uses in areas like biometrics, education, and employment

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The act requires AI system registration and imposes risk and quality management obligations on developers. Notably, it will affect providers of "general-purpose AI models with systemic risk," including companies like OpenAI, Anthropic, Google, and Meta

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Tech Industry Response

While Meta has taken a strong stance against the EU's approach, other tech giants have shown varying responses:

  1. Microsoft: Brad Smith, Microsoft's President, indicated that the company is likely to sign the code, stating, "Our goal is to find a way to be supportive"

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Source: Reuters

Source: Reuters

  1. OpenAI and Mistral: Both companies have already signed the code

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  2. Other tech companies: A group of over 45 European companies, including Airbus and Siemens, have urged the EU to postpone the implementation of the AI Act by two years, citing concerns about compliance uncertainty

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Potential Consequences and Criticisms

Meta argues that the EU's approach will "throttle the development and deployment of frontier AI models in Europe" and hinder European companies building businesses on these models

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. This stance aligns with Meta's history of pushing back against EU regulations, having already faced significant fines for antitrust violations

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The EU, however, maintains that the code and the AI Act are crucial for ensuring AI safety, transparency, and alignment with European values. Companies that don't sign the voluntary code may face increased regulatory scrutiny

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Source: The Register

Source: The Register

Global Implications and Future Outlook

The EU's efforts to regulate AI stand in contrast to approaches in other regions, particularly the United States, where regulations are generally less stringent

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. This divergence could have significant implications for the global AI landscape, potentially influencing how companies develop and deploy AI technologies across different markets.

As the August 2 deadline approaches, the tech industry's response to the EU's AI regulations will likely shape the future of AI development and governance not only in Europe but potentially worldwide.

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