AI Unchained: The Implications of Thierry Breton’s Resignation

Who is Thierry Breton? Thierry Breton was an important figure in the European Commission directing the internal EU market and taking a tough stance on the ‘big tech’. During his tenure, the EU AI Act and other regulations were introduced which targeted tech AI companies.

Breton resigned on Monday, September 16th, 2024. His resignation raises a lot of questions. Does it mean a likelihood for change in the present tech scene?

Let’s start with the rippling effects of the EU AI Act. The EU AI Act is presently acting like a double-edged sword, where it classifies AI systems based on risk profiles and imposes tough regulations on high-risk AI systems. I agree with this harsh criticism - the lack of clarity between ‘AI models’ and ‘AI systems’. The Act defines an ‘AI system’ as a machine-based system designed to operate with varying levels of autonomy and adaptiveness, generating outputs like predictions, content, recommendations, or decisions based on the input it receives. For a technical person - this is an AI model. Throughout the Act, these terms are used interchangeably. So, what is the Act actually referring to, a model or a system?

The EU is trying to regulate a model and the domain. The question remains ‘What are they trying to regulate?’ It’s a grey area which puts the Act in jeopardy, as the big tech can afford top lawyers and most are US-based - so they may care less or not at all. The time is near where the US will ?more likely hire skilled AI developers and coders from the EU. While those operating within the EU market will find themselves compelled to hire more lawyers. The biggest challenge is for the AI startups and mid-sized companies who must spend a huge bill on legal consulting. What a joy!

The impact of these policies on the European tech ecosystem is huge. You must have seen in the recent news a few top AI model players pulling out or reducing their business operations in the EU. Mistral AI, a Paris-based AI startup, has been making significant leaps in the AI industry. Recently, it closed a substantial Series A funding round, raising $415 million. Their substantial funding is from several US-based investors.

What might be the implications of Breton’s departure for AI development in the EU? Could there be potential changes in AI policy and shifts in regulation? What will be the opportunities for AI startups and innovation? I think the future of AI in Europe looks brighter.

Stéphane Séjourné is nominated to take the place of Breton, as the Executive Vice-President for Prosperity and Industrial Strategy in the European Commission. He will play a key role in shaping tech policy, including the EU AI Act as the Act claims to create a unified regulatory framework across EU for AI. By making sure AI systems are created and implemented in a responsible way, the Act helps to balance public protection and business innovation.

Séjourné is also responsible for the European Competitiveness Fund which plays a vital role in funding AI research and development. Séjourné will collaborate with other EU commissioners to implement policies that assure the private sector in developing AI technologies. This collaborative approach will make sure that regulations are not overly limiting and allow innovation to continue its course.

What does the global perspective look like? How do the US and China’s AI policies compare to Europe? How can changes in European law impact global tech dynamics? The EU is trying to establish itself as a global player in the politics of technology. But the EU’s harsh AI regulations could potentially drive away technology investment and allies. EU regulations can drive higher standards of safety and ethics in AI development without over-regulation. The EU has mostly regulated the end-product, not the starting materials. This approach has allowed various industries to thrive without unnecessary constraints. So, why make it harder for AI developers?

The UK and US have established a collaborative approach to AI, starting with the AI Safety Summit in November last year and the relationship has greatly grown over 2024. If the EU and the US started collaborating on AI standards and risk management, this could lead to a more unified and global approach to AI governance, and potentially challenge China’s dominance in the field.

The EU’s focus on transparency and accountability could attract investments from companies that prioritise ethical AI development without regulations hindering open research, high-risk R&D, model training, and the responsible deployment of AI products. However, due to existing regulatory controls on using publicly posted content by EU users, Meta will not be launching its newest model in the EU.

The tech industry must continue to engage with new opportunities in innovation. Otherwise, Europe will fall behind, especially compared to the US, and lose its valuable talent pool. To prevent this brain drain, we need to nurture an atmosphere where AI can be developed responsibly, without the hassles of over-regulation.