EU Considers Adjustments to AI Act to Spur Innovation and Reduce Burden

Brussels is considering adjustments to the European Union's AI Act to reduce the administrative burden and promote industry growth. Henna Virkkunen, Vice President of the European Commission for Technological Sovereignty, Security, and Democracy, has announced a plan to simplify AI regulations. This has sparked debate regarding the potential impacts on the landmark AI legislation. The EU AI Act, which is the world's first comprehensive regulatory framework for AI, adopts a risk-based approach, applying different rules based on the risk posed by AI systems. While some AI practices are prohibited outright, others are subject to strict governance, risk management, and transparency requirements. The act also establishes rules for general-purpose AI models. Virkkunen has stated that the Commission is examining the 'administrative burden' associated with the AI Act and considering potential reductions in reporting obligations. The aim is to foster an environment that is faster and simpler for AI investments. The Commission intends to gather industry feedback to address regulatory uncertainties that may hinder AI development and adoption. However, some lawmakers and organizations have cautioned against deregulation, emphasizing the importance of maintaining the effectiveness of the AI Act and ensuring consumer protection. They argue that simplification should not undermine the Act's goals or lead to the neglect of potential risks associated with AI.