The European Union’s “fragmented regulatory structure” is stifling innovation in artificial intelligence (AI), Meta CEO Mark Zuckerberg and Spotify CEO Danie Ek said in a joint statement. statement published on Friday. The two technology leaders added that the EU’s AI regulatory framework is “riddled with inconsistent implementation”, hampering the ability of the region’s companies to capitalize on the AI wave.
They noted:
“Instead of clear rules that inform and guide how companies across the continent do business, our industry faces overlapping regulations and inconsistent guidance on how to comply.”
The two founders warned that without “urgent changes” the EU will fall behind in the AI race.
The case for open source AI
According to the two founders, open-source AI, where models and tools are publicly accessible under permissive licenses, offers a significant opportunity for European organizations. Open-source AI can democratize access to cutting-edge technologies, prevent the concentration of power between a few major players, and foster a more competitive and innovative environment.
They pointed out that much of the Internet and leading tech companies already rely on open source technologies, suggesting that the future of AI development will similarly benefit from open collaboration and transparency.
They stated:
“We believe the next generation of ideas and startups will be built with open-source AI, as it allows developers to integrate the latest innovations at a low cost and gives institutions more control over their data.”
Meta in particular has embraced this model by open sourcing some of its AI technologies, including its Llama-sized language models. These models have already been used by public institutions and researchers to advance medical research and preserve endangered languages.
Similarly, Ek attributed Spotify’s success to its early use of AI.
The CEOs emphasized that with Europe now home to a significant number of open source developers, Europe is well positioned to leverage this approach to AI development.
Regulatory challenges
While regulation is necessary, CEOs say pre-emptive regulation of emerging technologies such as AI will do more harm than good. They noted:
“Europe’s risk-averse, complex regulations could prevent the country from benefiting from the big bets that could translate into big rewards.”
The founders further elaborated on the regulatory challenges faced by European companies by highlighting the uneven application of the EU’s General Data Protection Regulation (GDPR). Although the regulations aimed to “harmonize the use and flow of data” across the region, they say regulators are now unable to reach a decision on how to apply the law.
Meta, for example, has been ordered to delay training its models on publicly shared content from Facebook and Instagram until regulators figure out how to apply GDPR. In the short term, these delays create uncertainty.
In Meta’s case, the delay means that AI models will not reflect the “collective knowledge, culture and languages of Europe.” The delay also prevents Europeans from using the latest AI products. For example, Meta will not be able to release its Llama model in the EU.
The statement noted:
“The stark reality is that laws designed to increase European sovereignty and competitiveness do the opposite.”
A call for change
The CEOs argue that the EU’s inconsistent AI regulatory framework has already caused a brain drain, with most AI developers working outside the region. This trend will only accelerate and the region will miss a once-in-a-generation opportunity unless Europe actively changes its approach.
“Europe needs a new approach with clearer policies and more consistent enforcement,” they noted. A simplified regulatory regime will not only accelerate the growth of open-source AI but also provide support to European developers, they argue.
The statement noted:
“While Spotify and Meta use AI in different ways, we agree that thoughtful, clear and consistent regulation can promote competition and innovation while protecting people and giving them access to new technologies that empower them.”
