Europe’s AI Growth Hindered by Unclear Regulations

A person using ChatGPT on their laptop. Karina Karagyoz

An open letter in September, issued by researchers and companies, including Meta and Spotify, shed light on the difficult development of artificial intelligence (AI) technologies in Europe. The group calls for more clear and consistent regulations that could make the European market competitive with the other regions of the world.

In the letter “Europe needs regulatory certainty on AI”, the signatories urge the European Union to provide an effective system to simplify work with AI, stimulate research and maximize economic benefits. They emphasize the performance of other markets, such as the United States and China, and suggest the implementation of models that are open and free to the public, and ‘multimodal’ models that use not only text but also images and speech.

The Growth of The AI Industry

Data by Grand View Research, an India & U.S.-based market research company, shows that the AI industry worldwide is expected to grow by 37.3% each year until 2030. This raises questions about how Europe can adapt to such rapid growth, especially with unclear regulations that still hinder researchers and business leaders.

The Glass Room interviewed Pavel Nikolov, CEO of MartialLabs and founder of the website notworkingin.eu, which lists the different AI services and products unavailable in Europe due to regulations. The latest one concerns the new mode of ChatGPT, called Advanced Voice, which is now unavailable in Europe due to the EU AI Act which prohibits the recognition of emotions in a user’s voice.

“I believe that Europe needs to take immediate action to compete with AI giants like the US and China. China is one of the biggest players in AI right now, because of its lack of strict regulations and unfettered access to data,” he tells The Glass Room.

“Companies like Meta and Spotify are motivated by the need for a clear and predictable regulatory environment in Europe. They need stability and solid standards to be able to invest and innovate in AI,” says Nikolov.

Asking Copilot about EU regulations on AI. Karina Karagyoz

Founders’ Commitment to Ethical AI

Nikolov is the founder of a company that provides AI-driven solutions for businesses.  He talks about the importance of the collaboration of private sector companies, in shaping AI policies.

 “We must actively participate in the dialogue with the regulators, sharing our experience and knowledge. At our company, we have implemented internal policies and practices that ensure the ethical use of technology,” he says.

At his company, Nikolov directs regular risk assessments, reskills his employees to prepare them for the changes brought by AI, and actively engages with customers to understand their concerns.

“I used to focus on the technological capabilities of AI. Over time I realized how important it is to pay attention to the ethical and social aspects of these technologies,” says Nikolov.

The Glass Room also reached out to one of the signatories who preferred to stay anonymous. "If there is no certainty about regulations, we lose the power of communities to build the best AI worldwide," they said.