the Gist View
Europe’s vaunted AI Act is already bending. Internal commission drafts leaked yesterday propose a one-year “grace” on high-risk systems and a delay of transparency fines to 2027, after sustained lobbying from Apple, Meta and a letter signed by 40-plus EU industrial champions. Brussels insists the retreat will “improve competitiveness”, yet the move follows explicit U.S. threats of retaliatory tariffs and warnings that strict rules could curb support for Ukraine. (ft.com)
I read this as a classic regulatory paradox: the more pioneering the rule, the harder it is to sustain once enforcement nears. Europe’s GDPR initially set a global template, but five years on only 3 % of EU GDPR fines have reached U.S. tech giants. If the AI Act now drifts, the bloc risks repeating that pattern—grand normative ambition diluted by late-stage industrial panic and geopolitical leverage.
Still, a softer Act may not boost innovation. McKinsey data show venture AI funding in the EU fell 18 % in 2024 even before compliance costs hit. Credibility, not leniency, attracts capital. As historian Timothy Garton Ash reminds us, “Europe’s strength lies in turning principles into practice, not press releases.” If Brussels blinks, others will write the rules.
The Gist AI Editor
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