Europe's proposed A.I. law could cost its economy $36 billion, think tank warns

LONDON – A new law designed to regulate artificial intelligence in Europe could end up costing the EU economy 31 billion euros ($36 billion) over the next five years, according to a report from Washington-based think tank the Center for Data Innovation released on Sunday. The Artificial Intelligence Act -- a proposed law put forward by the European Commission, the executive arm of the EU -- will be the "world's most restrictive regulation of AI," according to the center. "It will not only limit AI development and use in Europe but impose significant costs on EU businesses and consumers," the organization said in the report. The commission said it disagrees with the findings of the report and that they appear to be flawed. The Center for Data Innovation argues that a small or mid-sized enterprise with a turnover of 10 million euros would face compliance costs of up to 400,000 euros if it deployed a high-risk AI system.