The EU risks falling behind China and the US on AI if the bloc focuses too much on regulation, according to Prince Constantijn of the Netherlands.
Constantijn is the special representative for Techleap, a Dutch startup accelerator that works to help local startups grow internationally by boosting their access to new technologies and talent.
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The Dutch prince told CNBC that he is “really concerned” that Europe’s focus is on regulating the technology more than becoming a leader in the space.
Techleap operates on a public private basis, working with the Netherlands’ ministries of Economic Affairs and Education Culture and Science and other partners.
The EU’s landmark AI Act gained final approval in May. The legislation will determine different risk levels for public AI applications and systems. Those with the highest risk levels will be forced to meet strict requirements to operate.
One mandatory guideline for AI systems will be a human rights test that can measure whether a system is biased or discriminatory.
Restrictions will be enforced periodically to allow AI providers time to adjust. At least 15% of all AI systems will fall under the high-risk category, the EU said.
The EU is not the only jurisdiction that risks falling behind due to a focus on regulation. Constantijn’s comments come after a February report from the House of Lords Communications and Digital Committee, outlining how the UK Government risks missing out on the economic and social benefits of AI due to its narrow view surrounding AI safety.
The committee’s report states that the UK’s narrow focus on AI safety may cause the country a loss of international influence and result it becoming dependent on foreign tech companies.
As AI continues to grow at a rapid pace, if the UK does not prioritise competition a small number of tech companies could take the majority of control, stifling smaller players in the market, the report states.
“One lesson from the way technology markets have developed since the inception of the internet is the danger of market dominance by a small group of companies,” Baroness Stowell of Beeston, Chairman of the House of Lords Communications and Digital Committee, said.
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By GlobalDataGlobalData forecasts that the overall AI market will be worth $909bn (£712.25bn) by 2030, registering a compound annual growth rate (GAGR) of 35% between 2022 and 2030.
In the GenAI space, revenues are expected to grow from $1.8bn in 2022 to $33bn in 2027 at a CAGR of 80%.
