European and American companies call for the AI Act to be postponed

Some European and American companies have called on the EU to postpone the implementation of the AI Act for at least two years. These companies argue that the proposed legislation could hinder the development of AI in the EU.

As reported by Bloomberg, the letter sent to the President of the European Commission, Ursula von der Leyen, is signed by 45 different organizations, including ASML Holding NV, Airbus SE, and Mistral AI, the French equivalent of OpenAI. Also, some groups representing Google and Meta have opposed the EU's AI Act for similar reasons.

A European Commission spokesperson previously stated that rules for general-purpose AI (GPAI) models will take effect on August 2, with enforcement of those rules scheduled to begin in 2026. The companies are now demanding a more "innovation-friendly regulatory approach" for the rules applying to general-purpose AI models and high-risk AI systems.

"To address the uncertainty this situation is creating, we urge the Commission to propose a two-year 'clock-stop' on the AI Act before key obligations enter into force," the letter states.

Under the AI Act, all companies are required to vigorously test their models for bias, toxicity, and robustness before releasing them to the public. Additionally, AI developers must provide the European Commission with technical documentation, comply with EU copyright laws, and be transparent about the content used for training their algorithms.

Each AI firm should also send reports on energy efficiency and serious incidents to the European Commission. "This postponement, coupled with a commitment to prioritize regulatory quality over speed, would send innovators and investors around the world a strong signal that Europe is serious about its simplification and competitiveness agenda," the letter added.

The companies argue that the path for complying with rules is unclear as the EU hasn't released any guidelines yet. The EU also missed the May deadline for releasing the AI Code of Practice, a set of procedures used to help companies navigate the compliance process. Though the AI Code of Practice might be released by the end of the year.