Meta & 48 companies urge EU to ease AI regulations in open letter

Meta CEO Mark Zuckerberg, alongside 48 other signatories, has endorsed an open letter urging the European Union to reduce regulatory restrictions on AI development. The letter argues that current regulations hinder AI advancements in the region, putting the EU at risk of falling behind globally.

The letter read, “We are a group of companies, researchers and institutions integral to Europe and working to serve hundreds of millions of Europeans. We want to see Europe succeed and thrive, including in the field of cutting-edge AI research and technology. But the reality is Europe has become less competitive and less innovative compared to other regions and it now risks falling further behind in the AI era due to inconsistent regulatory decision-making.”

The open letter highlights the challenges AI-related organisations face due to the EU’s stringent data privacy rules, such as the requirement for explicit user consent for data usage. These hurdles have led some companies to exclude EU markets or create region-specific provisions, delaying the rollout of AI technologies.

Meta, for instance, has postponed the launch of its AI chatbot in Europe. While the company has successfully introduced AI tools in other regions, EU regulations, particularly around user consent, have impeded progress. In June, Meta had to introduce an opt-out option for EU users under the 'Right to Object,' in response to the region’s Digital Services Act (DSA).

Nick Clegg, Meta’s Head of Global Affairs, has expressed frustration over the EU’s stringent data rules, which the company sees as an impediment to AI innovation. Nonetheless, the rules are consistent with the region’s broader emphasis on user rights, particularly in terms of data privacy and control over personal information.

Companies like Ericsson, Spotify, and SAP have also joined the call for fewer regulations, seeing potential business benefits in AI expansion. The letter aims to push EU governing bodies to reconsider their stance on AI oversight to enable growth and global competitiveness in the field.

EU regulators remain cautious about AI’s rapid development. Drawing lessons from the social media era, officials are focused on implementing protections proactively, hoping to prevent the potential societal harms that come with unchecked technological growth.

The ongoing debate centres on balancing innovation with responsibility. While businesses are calling for reduced regulations to maximise AI projects, EU authorities are tasked with safeguarding privacy and ethical standards, a challenge that may require navigating public pressure from corporate stakeholders.

The letter also read, “We hope European policymakers and regulators see what is at stake if there is no change of course. Europe can’t afford to miss out on the widespread benefits from responsibly built open AI technologies that will accelerate economic growth and unlock progress in scientific research. For that we need harmonised, consistent, quick and clear decisions under EU data regulations that enable European data to be used in AI training for the benefit of Europeans. Decisive action is needed to help unlock the creativity, ingenuity and entrepreneurialism that will ensure Europe’s prosperity, growth and technical leadership.”

EU regulators must now assess the merits of the business push for looser AI rules against the potential long-term consequences for society.