Connect with us

Business

As AI booms, EU lawmakers wrangle over new rules to protect citizens


Rapid technological advances such as the ChatGPT generative artificial intelligence (AI) app are complicating efforts by European Union lawmakers to agree on landmark AI laws, sources with direct knowledge of the matter have told Reuters.

The European Commission proposed the draft rules nearly two years ago in a bid to protect citizens from the dangers of the emerging technology, which has experienced a boom in investment and consumer popularity in recent months.

For the latest headlines, follow our Google News channel online or via the app.
The draft needs to be thrashed out between EU countries and EU lawmakers, called a trilogue, before the rules can become law.
Several lawmakers had expected to reach a consensus on the 108-page bill last month in a meeting in Strasbourg, France, and proceed to a trilogue in the next few months.
But a five-hour meeting on Feb 13 resulted in no resolution and lawmakers are at loggerheads over various facets of the Act, according to three sources familiar with the discussions.
While the industry expects an agreement by the end of the year, there are concerns that the complexity and the lack of progress could delay the legislation to next year, and European elections could see MEPs with an entirely different set of priorities take office.
“The pace at which new systems are being released makes regulation a real challenge,” said Daniel Leufer, a senior policy analyst at rights group Access Now. “It’s a fast-moving target, but there are measures that remain relevant despite the speed of development: transparency, quality control, and measures to assert their fundamental rights.”

Brisk developments

Lawmakers are working through the more than 3,000 tabled amendments, covering everything from the creation of a new AI office to the scope of the Act’s rules.
“Negotiations are quite complex because there are many different committees involved,” said Brando Benifei, an Italian MEP and one of the two lawmakers leading negotiations on the bloc’s much-anticipated AI Act. “The discussions can be quite long. You have to talk to some 20 MEPs every time.”
Legislators have sought to strike a balance between encouraging innovation while protecting citizens’ fundamental rights.
This led to different AI tools being classified according to their perceived risk level: from minimal through to limited, high, and unacceptable. High-risk tools won’t be banned, but will require companies to be highly transparent in their operations.
But these debates have left little room for addressing aggressively expanding generative AI technologies like ChatGPT and Stable Diffusion that have swept across the globe, courting both user fascination and controversy.
By February, ChatGPT, made by Microsoft-backed OpenAI, set a record for the fastest growing user base of any consumer application app in history.
Almost all of the big tech players have stakes in the sector, includ-ing Microsoft, Alphabet and Meta.

Big tech, big problems

The EU discussions have raised concerns for companies — from small startups to Big Tech — on how regulations mightaffect their business and whether they would be at a competitivedisadvantage against rivals from other continents.
Behind the scenes, Big Tech companies, who have invested billions of dollars in the new technology, have lobbied hard to keep their innovations outside the ambit of the high-risk clarification that would mean more compliance, more costs and more accountability around their products, sources said.
A recent survey by industry body applied AI showed that 51 per-cent of the respondents expect a slowdown of AI development activi-ties as a result of the AI Act.
To address tools like ChatGPT, which have seemingly endless applications, lawmakers introduced yet another category,“General Purpose AI Systems” (GPAIS), to describe tools that can be adapted to perform a number of functions. It remains unclear if all GPAIS will be deemed high-risk.
Representatives from tech companies have pushed back against such moves, insisting their own in-house guidelines are robust enough to ensure the technology is deployed safely, and even suggesting the Act should have an opt-in clause, under which firms can decide for themselves whether the regulations apply.

Double-edged sword?

Google-owned AI firm DeepMind, which is currently testing its own AI chatbot Sparrow, told Reuters the regulation of multi-purpose systems was complex.
“We believe the creation of a governance framework around GPAIS needs to be an inclusive process, which means all affected communities and civil society should be involved,” said Alexandra Belias, the firm’s head of international public policy.
She added: “The question here is: how do we make sure the risk-management framework we create today will still be adequate tomorrow?”
Daniel Ek, chief executive of audio streaming platform Spotify –- which recently launched its own “AI DJ,” capable of curating personalized playlists –- told Reuters the technology was “a double-edged sword.”
“There’s lots of things that we have to take into account,” he said. “Our team is working very actively with regulators, trying to make sure that this technology benefits as many as possible and is as safe as possible.”
MEPs say the Act will be subject to regular reviews, allowing for updates as and when new issues with AI emerge.
But, with European elections on the horizon in 2024, they are un-der pressure to deliver something substantial the first time around.
“Discussions must not be rushed, and compromises must not be made just so the file can be closed before the end of the year,” said Leufer. “People’s rights are at stake.”

Read more: EU lawmakers pass landmark rules to rein in power of tech giants

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Abu Dhabi Overtakes Oslo for Sovereign Wealth Fund Capital in Global SWF’s First City Ranking

Today, industry specialist Global SWF published a special report announcing a new global ranking of cities according to the capital managed by their Sovereign Wealth Funds (SWFs). The findings show that Abu Dhabi is the leading city that manages the most SWF capital globally, thanks to the US$ 1.7 trillion in assets managed by its various SWFs headquartered in the capital of the UAE. These include the Abu Dhabi Investment Authority (ADIA), Mubadala Investment Company (MIC), Abu Dhabi Developmental
Holding Company (ADQ), and the Emirates Investment Authority (EIA). Abu Dhabi now ranks slightly above Oslo, home to the world’s largest SWF, the Government Pension Fund (GPF), which manages over US$ 1.6 trillion in assets. Abu Dhabi and Oslo are followed by Beijing (headquarters of the China Investment Corporation), Singapore (with GIC Private and Temasek Holdings), Riyadh (home to the
Public Investment Fund), and Hong Kong (where China’s second SWF, SAFE
Investment Corporation, operates from). Together, these six cities represent two thirds
of the capital managed by SWFs globally, i.e., US$ 12.5 trillion as of October 1, 2024.
For the past few decades, Abu Dhabi has grown an impressive portfolio of institutional
investors, which are among the world’s largest and most active dealmakers. In addition
to its SWFs, the emirate is home to several other asset owners, including central banks,
pension funds, and family offices linked to member of the Royal Family. Altogether, Abu
Dhabi’s public capital is estimated at US$ 2.3 trillion and is projected to reach US$ 3.4
trillion by 2030, according to Global SWF estimates.
Abu Dhabi, often referred to as the “Capital of Capital,” also leads when it comes to
human capital i.e., the number of personnel employed by SWFs of that jurisdiction, with
3,107 staff working for funds based in the city.
Diego López, Founder and Managing Director of Global SWF, said: “The world ranking
confirms the concentration of Sovereign Wealth Funds in a select number of cities,
underscoring the significance of these financial hubs on the global stage. This report
offers valuable insights into the landscape of SWF-managed capital and shows how it is
shifting and expanding in certain cities in the world.”

Continue Reading

Business

AM Best Briefing in Dubai to Explore State of MENA Insurance Markets; Panel to Feature CEOs From Leading UAE Insurance Companies

AM Best will host a briefing focused on the insurance markets of the Middle East and North Africa (MENA) on 20 November 2024, at Kempinski Central Avenue in Dubai.
At this annual regional market event, senior AM Best analysts and leading executives
from the (re)insurance industry will discuss recent developments in the MENA region’s
markets and anticipate their implications in the short-to-medium term. Included in the
programme will be a panel of chief executive officers at key insurance companies in the
United Arab Emirates: Abdellatif Abuqurah of Dubai Insurance; Jason Light of Emirates
Insurance; Charalampos Mylonas (Haris) of Abu Dhabi National Insurance Company
(ADNIC); and Dr. Ali Abdul Zahra of National General Insurance (NGI).
Shivash Bhagaloo, managing partner of Lux Actuaries & Consultants, will his present
his observations in an additional session regarding implementation of IFRS 17 in the
region. The event also will highlight the state of the global and MENA region
reinsurance sectors, as well as a talk on insurance ramifications stemming from the
major United Arab Emirates floods of April 2024. The programme will be followed by a
networking lunch.
Registration for the market briefing, which will take place in the Diamond Ballroom at the
Kempinski hotel, begins at 9:00 a.m. GST with introductory comments at 9:30 a.m.
Please visit www.ambest.com/conference/IMBMENA2024 for more information or to
register.
AM Best is a global credit rating agency, news publisher and data analytics
provider specialising in the insurance industry. Headquartered in the United
States, the company does business in over 100 countries with regional offices in
London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City.

Continue Reading

Business

Future of Automotive Mobility 2024: UAE Leads the Charge in Embracing Digital Car Purchases and Alternative Drivetrains

-UAE scores show highest percentage among the region in willingness to purchase a car
completely online
– Openness to fully autonomous cars has grown to 60% vs previous 32%.
– More than half of UAE respondents in the survey intend to move to hybrid cars during
next car purchase, while less than 15% intend to move to fully electric car.
– UAE sees strong use of new mobility services such as ride-hailing (Uber, Careem, Hala
Taxi)
– The perceived future importance of having a car is not only increasing in UAE but is
higher than any other major region globally, even China

Arthur D. Little (ADL) has released the fourth edition of its influential Future of Automotive Mobility (FOAM) report, presenting a detailed analysis of current and future trends in the automotive industry. This year’s study, with insights from over 16,000 respondents across 25 countries, includes a comprehensive focus on the United Arab Emirates (UAE). The report examines car ownership, electric vehicles,
autonomous driving, and new mobility services within the UAE.

“The UAE is at the forefront of automotive innovation and consumer readiness for new mobility
solutions,” said Alan Martinovich, Partner and Head of Automotive Practice in the Middle East
and India at Arthur D. Little. “Our findings highlight the UAE’s significant interest in
transitioning to electric vehicles, favorable attitudes towards autonomous driving technologies,
and a strong inclination towards digital transactions in car purchases. These insights are critical
for automotive manufacturers and policymakers navigating the evolving landscape of the UAE
automotive market.”
Key Findings for the UAE:
1. Car Ownership:
o Over half of UAE respondents perceive that the importance of owning a car is
increasing, with the study showing the increase higher than any other major
region, including China.
o Approximately 80% of UAE respondents expressed interest in buying new (as
opposed to used) cars, above Europe and the USA which have mature used
vehicle markets

2. Shift to Electric and Hybrid Vehicles:
o While a high number of UAE respondents currently own internal combustion
engine (ICE) vehicles, more than half intend that their next vehicle have an
alternative powertrain, with significant interest in electric and plug-in hybrid
(PHEV) options. Less than 15% plan to opt for pure battery electric vehicles
(BEVs).

3. Emerging Mobility Trends:

o Ride-hailing services are the most popular new mobility option among UAE
residents, with higher usage rates than traditional car sharing and ride sharing.
The study indicates a strong openness to switching to alternative transport modes
given the quality and service levels available today.

4. Autonomous Vehicles:
o UAE consumers are among the most open globally to adopting autonomous
vehicles, with a significant increase in favorable attitudes from 32% in previous
years to 60% this year versus approximately 30% in mature markets. Safety
concerns, both human and machine-related, remain the primary obstacles to
broader adoption.

5. Car Purchasing Behavior and Sustainability:
o The internet has become a dominant channel for UAE residents throughout the car
buying process, from finding the right vehicle to arranging test drives and closing
deals. UAE car buyers visit dealerships an average of 3.9 times before making a
purchase, higher than any other region in the world, emphasizing the need for
efficient integration of online and offline experiences.
o Upwards of 53% of respondents from the region would prefer to ‘close the deal’
and complete the purchase of their car online, which is the highest for any region
in the world.
o Sustainability is a key factor cited by UAE consumers as influencing car choice.
The UAE scored among the top half of regions, highlighting the importance of
environmental considerations.

“Our study confirms the promising market opportunities for car manufacturers (OEMs) and
distributors in the UAE” commented Philipp Seidel, Principal at Arthur D. Little and co-Author
of the Global Study. “Consumers in the Emirates show a great and increasing appetite for cars
while being among the most demanding globally when it comes to latest vehicle technologies
and a seamless purchase and service experience.”
The comprehensive report, “The Future of Automotive Mobility 2024” by Richard Parkin and
Philipp Seidel, delves into global automotive trends and their impact on various regions,
including the UAE. This study is an invaluable tool for industry stakeholders seeking to navigate
and leverage the dynamic changes driving the future of mobility.

 

Continue Reading

Trending