EU values as a catalyst for European AI growth?

In recent months, the debate surrounding AI governance has intensified, often framing regulations as barriers to technological advancement. Critics contend that Europe’s focus on ethics is hindering its progress. However, this perspective oversimplifies a complex issue. Most importantly, aligning AI growth with European values presents significant opportunities for a more competitive digital economy – opportunities that deserve exploration and action.

In building a strong society, good rules help create stability and shared resources. However, a prevailing narrative in recent months has focused on two central points: that regulation stifles innovation and that Europe is falling behind the United States and China due to excessive regulation. This perspective is both flawed and overly simplistic for several reasons.

Measuring progress is not easy, and attributing Europe's slower tech growth solely to regulation misses the bigger picture. The argument that the EU is too focused on ethics, allowing the US and China to race ahead in AI, creates the misleading impression that Europe’s lag is purely a result of regulatory factors.

While former ECB President Mario Draghi has highlighted the dangers of poor and excessive regulation, he also emphasized the importance of a balanced approach. For this reason, the EU Commission's recent efforts toward regulatory streamlining are welcome. However, we must also consider that the range of tools and platforms we currently use has thrived in a relatively unregulated environment, which has led to market consolidation that, as Draghi warned, can stifle genuine innovation.

The recent fine given to Apple shows how protecting consumer freedom can help the economy grow. This is what the Digital Markets Act aims to do – increase competition, not slow it down. No one thinks the EU's approach is perfect. For example, weakening the Code of Practice for General Purpose AI is a mistake. Without checking products before they enter our market, we risk letting poor quality AI into our businesses, which could harm entire supply chains.

Similarly, while the General Data Protection Regulation (GDPR) is often criticized for complicating business operations, it embodies dignity-based legislation. It recognizes that privacy infringements can have profound effects, as evidenced by instances where flawed algorithms exclude individuals from essential services or lead to harmful targeting of vulnerable populations. Given this context, the GDPR should be cherished yet reformed.

To make Europe more competitive, the GDPR should make it easier for member states to work together. Having one clear interpretation would avoid conflicting guidelines from different data protection authorities, which makes business harder.

The European Commission's "AI Continent Action Plan" launched on 9 April is important. This plan focuses on five areas: computing power, data, skills, simpler rules, and using AI in key sectors. The plan includes AI factories to build advanced AI models and plans to boost Europe's computing power.

Building a robust European tech stack has never been more urgent, especially as the pandemic has highlighted our dependency on foreign technology. European businesses need cloud services that are secure and allow them to switch providers easily without unfair fees.

As companies transition into the data economy, developing value-added services rooted in their own data assets, they need to ensure customer trust and platform control. Reducing reliance on single providers, while fostering diverse, interoperable, and scalable digital platforms, will create significant opportunities for both users and suppliers. Furthermore, ensuring that data storage and processing occur on European soil aligns with existing regulations and represents a substantial business opportunity in the rapidly evolving digital landscape.

In a nutshell, rooting innovation onto European values is a challenge we must relish – it is not a choice, it is to protect what Europe is. This, too, is part of innovation.