According to Google's chief legal officer, Kent Walker, the legal framework governing the use of artificial intelligence (AI) should support innovation. In a speech at the European Business Summit, Walker stressed that 'Europe should aim for the best AI rules, not the first AI rules, and that technological leadership requires a balance between innovation and regulation. Not micromanaging progress, but holding actors responsible when they breach public trust.' The goal is to maintain technological leadership and equip businesses with the confidence to keep funding AI innovation.

Why does it matter?

The European Union institutions are currently pushing to get a deal on comprehensive AI rules in a trilogue round by 6 December. In the context of a race to regulate AI, a wide range of technology firms and large businesses are warning the EU against over-regulating foundation AI models and general-purpose AI (GPAI) in the upcoming AI Act, claiming it might kill or push young startups out of the EU.
While regulation is necessary to minimize risks and maximize benefits, it should not stifle innovation.

Business group DigitalEurope and 32 European digital associations signed a letter claiming that the bloc accounts for only 3% of the world's AI unicorns, endorsing a joint proposal by France, Germany, and Italy to limit the scope of the AI Act for foundation models to transparency requirements. The AI legal framework should strike a balance between innovation and regulation in order to guarantee that AI models are subject to cross-cutting, principles-based, risk-based regulation that expands on current rules.