EU’s leadership on AI governance faces tough tests

Significance

The proposal advances the Commission’s work over the last five years on developing the EU’s approach to AI. The EU seeks to become a global leader in responsibly developing and harnessing a potentially transformative technology. To that end, it has also assigned new funding to AI development.

Impacts

• The EU's regulatory proposal has major gaps, notably in addressing the impact of AI systems on employment.
• The regulatory and compliance costs of AI developers and users in the EU are set to rise.
• Emerging markets will closely track the progress of the EU AI’s proposal as they develop their own policies.