A new report released today by the Progressive Policy Institute calls on the European Union to support artificial intelligence (AI) industry growth and innovation by enacting targeted reforms to help small and medium-sized enterprises (SMEs) in Europe succeed. The report also calls on the EU to consider policies to facilitate the emergence of a highly-skilled technical workforce, and strike a balance between consumer protections and overly burdensome regulations.
Report authors Caleb Watney and Dirk Auer outline the existing regulations that hamper the development of AI systems in the EU, as well as the unique promise AI holds for SMEs. Unlike the United States and China, the EU has largely failed to foster global players in the digital platform industry. Of the 30 largest internet companies in the world, only one is European. Those in the EU’s tech industry are smaller players who often rely on foreign AI platforms – mostly American – to boost AI adoption. The EU’s protectionist tax and trade measures hamstring these platforms, stifle innovation and limit job creation in Europe.
“There’s a real opportunity here for the EU to bootstrap the AI adoption process for their SMEs and become a global player in the tech industry. But it won’t happen without smart investment in public datasets, increased regulatory certainty, and an openness to working with rather than against US firms,” said Caleb Watney, Director of Innovation Policy at PPI.
Artificial intelligence is already being used across a wide range of domains to decrease power costs, improve logistics and sourcing systems, predict cash flows, streamline legal analysis, aid in drug discovery, improve factory safety conditions, and identify logistics efficiencies. This is in addition to opening up entirely new fields like autonomous vehicles, drone delivery systems, and instantaneous language translation. While many of AI’s most eye-catching use cases will likely remain the preserve of large platforms, the technology also holds tremendous promise for SMEs.
Key policy recommendations in the brief include:
Data investment as a public good:
Provide regulatory certainty:
Encourage an ecosystem of AI platforms:
Expand the AI talent pool
Media Contact: Aaron White – awhite@ppionline.org
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