AI-act: Are the EU’s new AI rules too strict or just necessary?

The European Union is about to reach a milestone with the introduction of the Artificial Intelligence Act (AI Act). This legislation, expected to take effect in July 2025, is the world’s first comprehensive regulation that puts artificial intelligence in a legal context. While the act is intended to make AI systems safer and more transparent, it has also prompted fierce criticism from the technology sector. Following an article in the Financieel Dagblad, we discuss the criticism from the technology sector, focusing on the underlying principles and objectives of the new legislation.

Strict rules inhibit innovation, says big tech

Major technology companies, including Apple, Google and SAP, warn that the AI Act’s strict requirements could hamper innovation. For example, Apple has announced that it will not release its new AI tool, Apple Intelligence, in Europe for the time being. The company first wants to make sure the technology complies with extensive European regulations. In addition, critics argue that the legislation could further widen the gap with the United States, a forerunner in AI development. The gap arises because the U.S. offers a less regulated environment, where companies can innovate and bring new products to market more quickly. European companies, bound by stricter regulations, would be less agile as a result.

Criticism big tech companies justified?

However, in drafting the AI Act, the European Union has tried to strike a balance between encouraging innovation and ensuring safety and ethics. The need for regulation is great because AI systems are increasingly being used in decision-making processes that have major implications for individuals and society. Without clear guidelines, this can lead to abuse and discrimination, among other things. The legislation therefore introduces a risk-based approach, classifying AI systems according to the risk they pose to society. This approach is designed to avoid unnecessarily hampering innovation, while protecting the fundamental rights of citizens and bringing new applications to market responsibly.

The Brussels Effect: European influence on global standards

In Brussels, they see the AI Act as a tool to set global standards. The so-called “Brussels Effect” causes companies worldwide to adapt their operations to European regulations. Simply because the EU market, with 450 million inhabitants, is too important to ignore. This effect is already visible in other sectors, such as privacy law, where international companies have harmonized their policies with European standards. The hope is that the AI Act will have a similar impact, giving Europe a leading role in defining ethical and safe AI applications.

An opportunity for businesses: market share and trust

While the AI Act presents challenges, it also presents opportunities. Companies that invest early in compliance and adapt their systems to the new requirements can differentiate themselves from competitors. The legislation creates an environment where ethical and secure AI solutions are valued, allowing companies to gain a competitive advantage.

In addition, companies that comply with regulations will more easily gain the trust of customers and business partners. This is especially true in markets where transparency and security are crucial, such as healthcare, financial services and transportation.

Conclusion: preparation is key

The AI Act marks a new phase in the relationship between technology, legislation and innovation. It is essential for entrepreneurs to recognize not only the obligations but also the opportunities that these regulations present. By acting proactively, companies can not only avoid risks, but also take a strategic position in a rapidly developing market.

Advice

Want to learn more about how your company can prepare for the AI Act? Or do you have questions about the above developments or other legal issues. Our specialized lawyers will be happy to assist you. You can contact one of our attorneys by email, telephone or fill out the contact form for an initial consultation without obligation. We will be happy to think along with you.