Creating leading generative AI is currently an insurmountable challenge for European firms, according to Dragoș Tudorache, the outgoing MEP responsible for the EU’s AI Act. He argues that without easier access to capital, European AI companies will remain dependent on the vast computing resources controlled by entrenched US tech giants.
Tudorache, who played a key role in shaping the AI Act, emphasizes the need for capital market reform to provide European firms with resources currently only accessible through partnerships or outright sales to US companies. He highlights the stories of European companies developing competitive products but ultimately having to sell out due to a lack of available capital.
A proposed solution to the EU’s struggle to produce global tech leaders is a capital markets union, which aims to keep investment money within the continent and facilitate cross-border investment in startups. However, efforts to establish this union face opposition from low-tax member states.
Despite acknowledging the challenges, Tudorache urges Europeans to shift their mindset away from self-deprecation regarding AI and advocates for a more optimistic outlook. He acknowledges the dominance of US tech giants in the AI landscape, making it challenging for EU companies to compete independently.
Tudorache cites examples like Mistral AI and Deepmind to illustrate how promising European companies often end up partnering with or being acquired by US counterparts. He emphasizes the critical need for smoother access to private funding to support fast-paced innovation in the EU.
While some European AI experts have called for direct public funding of AI models, Tudorache believes that private funding is essential for fostering a competitive industry. He emphasizes the importance of a capital markets union to facilitate easier access to private funding for EU startups.
Tudorache’s legacy includes his role in shaping the AI Act, which has been hailed as the world’s first comprehensive legislation on AI. He defends the act as a necessary step to regulate an industry that has operated without rules for too long, aiming to support EU entrepreneurs while ensuring responsible AI development.
Despite the challenges and pushback against the AI Act, Tudorache remains optimistic about the EU’s ability to adapt and regulate the AI sector effectively. He acknowledges the complexity of the legislative process but believes that decisive action is necessary to address the evolving AI landscape in Europe.
Source: sciencebusiness.net
