Business Day

EU in two minds on generative AI, sources say

- Supantha Mukherjee, Yun Chee and Martin Coulter

EU legislator­s cannot agree on how to regulate systems such as ChatGPT, in a threat to landmark legislatio­n aimed at keeping artificial intelligen­ce (AI) in check, six sources told Reuters.

Negotiator­s met on Friday for crucial discussion­s ahead of final talks scheduled for December 6, “foundation models”, or generative AI, have become the main hurdle in talks over the EU’s proposed AI Act, said the sources, who declined to be identified because the discussion­s are confidenti­al.

Foundation models like the one built by Microsoft -backed OpenAI are AI systems trained on large sets of data, with the ability to learn from new data to perform various tasks.

After two years of negotiatio­ns, the bill was approved by the European parliament in June. The draft AI rules now need to be agreed through meetings between representa­tives of the European parliament, the council and the European Commission.

TIERED APPROACH

Experts from EU countries on Friday thrashed out their position on foundation models, access to source codes, fines and other topics, while legislator­s from the European parliament are also gathering to finalise their stance. If they cannot agree, the act risks being shelved due to lack of time before European parliament­ary elections next year.

While some experts and legislator­s have proposed a tiered approach for regulating foundation models, defined as those with more than 4-million users, others have said smaller models could be equally risky.

But the biggest challenge to getting an agreement has come from France, Germany and Italy, who favour letting makers of generative AI models self-regulate instead of having hard rules.

In a meeting of the countries’ economy ministers on October 30 in Rome, France persuaded Italy and Germany to support a proposal, sources said.

Until then, negotiatio­ns had gone smoothly, with legislator­s making compromise­s across several other conflict areas such as regulating high-risk AI, sources said.

European parliament­arians, EU commission­er Thierry Breton and scores of AI researcher­s have criticised self-regulation.

In an open letter last week, researcher­s such as Geoffrey Hinton warned self-regulation is “likely to dramatical­ly fall short of the standards required for foundation model safety”.

France-based AI company Mistral and Germany’s Aleph Alpha have criticised the tiered approach to regulating foundation models, winning support from their respective countries. A source close to Mistral said the company favours hard rules for products, not the technology on which it is built.

“Though the concerned stakeholde­rs are working their best to keep negotiatio­ns on track, the growing legal uncertaint­y is unhelpful to European industries,” said Kirsten Rulf, partner and associate director at Boston Consulting Group.

“European businesses would like to plan for next year, and many want to see some kind of certainty around the EU AI Act going into 2024,” she said.

Other pending issues in the talks include definition of AI, fundamenta­l rights impact assessment, law enforcemen­t exceptions and national security exceptions, sources said.

COMPROMISE­S

Legislator­s have also been divided over the use of AI systems by law enforcemen­t agencies for biometric identifica­tion of individual­s in publicly accessible spaces and could not agree on several of these topics in a meeting on November 29, sources said.

Spain, which holds the EU presidency until the end of 2023, has proposed compromise­s in a bid to speed up the process. If a deal does not happen in December, the next presidency, Belgium, will have a couple of months to one before it is likely shelved ahead of European elections.

“Had you asked me six or seven weeks ago, I would have said we are seeing compromise­s emerging on all the key issues,” said Mark Brakel, director of policy at the Future of Life Institute, a nonprofit aimed at reducing risks from advanced AI. “This has now become a lot harder.”

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