Google Joins EU’s AI Code of Practice—But Warns Regulation Could Stifle Innovation

Big Tech's AI arms race hits a regulatory speed bump.

Google just inked the EU's voluntary AI ethics pact—joining Meta, Microsoft, and OpenAI in a toothless show of goodwill. The move comes as Brussels finalizes binding AI legislation that could kneecap development.

Regulation vs. innovation: Silicon Valley's trillion-dollar dilemma

While paying lip service to 'responsible AI,' Alphabet's lobbyists are working overtime to water down the EU AI Act. Their argument? Excessive rules will let China eat our lunch in the algorithms arms race.

Meanwhile, Wall Street still can't decide if AI is humanity's salvation or just another bubble to pump and dump.

Key Takeaways

• Google said Wednesday that it will sign the EU's Code of Practice for artificial intelligence developers.
• Google said it still has concerns that AI development in Europe could be slowed by excessive regulations.
• Meta has said it will not sign the voluntary code, while OpenAI and Microsoft have signaled their willingness to do so.

Google announced on Wednesday its plans to sign onto the European Union's "Code of Practice" for artificial intelligence, a set of guidelines on how businesses can follow the rules of the E.U.'s new AI Act.

The tech giant, owned by Alphabet (GOOGL), said in a Wednesday blog post that it WOULD sign the code as the final version "comes closer to supporting Europe's innovation and economic goals than where it began," but noted that "we remain concerned that the AI Act and Code risk slowing Europe’s development and deployment of AI."

"In particular, departures from EU copyright law, steps that slow approvals, or requirements that expose trade secrets could chill European model development and deployment, harming Europe’s competitiveness," the post from Google President of Global Affairs Kent Walker said.

The European Commission, the enforcement arm of the E.U., released the code earlier this month. The Commission said companies can abide by the AI Act by signing and following the Code of Practice, and said that would "reduce their administrative burden and give them more legal certainty than if they proved compliance through other methods."

Big tech firms have been divided on the law and code of practice, as ChatGPT Maker OpenAI said earlier this month that it would sign the code, while Facebook and Instagram parent Meta Platforms (META) opted not to do so. Microsoft's (MSFT) President Brad Smith told Reuters earlier this month that "it's likely" that the Copilot maker will sign onto the code.

Meta's Chief Global Affairs Officer Joel Kaplan said this month that the code "introduces a number of legal uncertainties for model developers, as well as measures which go far beyond the scope of the AI Act," and said that Meta believes the policies will slow AI development in Europe.

Shares of Google's parent company Alphabet were little changed on Wednesday morning.