European Union Closes To Ratification Of AI Usage Rules, Including Microsoft-backed ChatGPT Model

EU industrial head Thierry Breton, (photo: x @ThierryBreton)

On Friday, February 2, the European Union approached steps to ratify regulations governing the use of artificial intelligence (AI) and AI models such as Microsoft-backed ChatGPT, after EU member states approved a political agreement reached in December.

These rules, proposed by the European Commission three years ago, aim to set global standards for technologies used in various industries ranging from banking and retail to the automotive and aviation sectors.

The rules also set parameters for the use of AI for military, criminal and security purposes.

The head of the EU industry, Thierry Breton, said that the Artificial Intelligence Act (AI) is a historic and first thing in the world.

"Today member states approved the political deal reached in December, acknowledging the perfect balance found by negotiators between innovation and security," he said in a statement.

One of the experts' main concerns is that generative AI has stepped up deepfakes - a realistic video yet created by an AI algorithm trained with multiple online footage - that appears on social media, confusing between facts and fiction in public life.

The European Union's digital head, Margrethe Vestager, said that the spread of fake images sexually depicting pop singer Taylor Swift on social media in recent days confirmed the need for the new rule.

"The incident that happened to @taylorswift13 tells everything: #Losses that #AI can cause if used badly, responsibilities #platform, & why it is so important to enforce #regulation #technology," he said on social platform X.

Friday's deal was certain after France, which last opposed, reduced its objections to the AI Act after gaining strict conditions that balance transparency versus business secrets and reduced administrative burdens on high-risk AI systems.

The goal is to allow competitive AI models to develop in the bloc, a EU diplomatic official told Reuters earlier on Friday. The official declined to be named because he was not allowed to comment publicly on the matter.

French AI startup Mistral founded by former AI Meta and Google researchers, as well as German Aleph Alpha have influenced their respective governments on the issue, sources said.

Germany this week also supports these rules.

The member-like CCIA technology lobby group Google, Amazon, Apple, and Meta Platforms, warned about the obstacles ahead.

"Many of the new AI rules are still unclear and can slow down the development and introduction of the innovative AI application in Europe," said CCIA Europe Senior Policy Manager Boniface de Champris.

"The proper implementation of the law will be very important to ensure that AI rules do not burden companies in their efforts to innovate and compete in emerging markets, very dynamically."

The next step for the AI Law to become a law is a vote by a key committee of EU legislators on February 13 and a European Parliament vote in March or April. It is likely to take effect before the summer and should be implemented in 2026 although some parts of the regulation will take effect earlier.