Germany Wants EU to Double Down on Idea That Would Hinder the AI Economy

The European Commission has proposed strictly regulating AI systems that meet two conditions: they are used in sectors and in a manner where significant risks are likely to occur. But Germany has called on the EU to abandon its proposal, arguing that tougher rules should apply for all sectors that use AI and even for AI applications that do not pose a significant risk. This is not the first time that Germany has called for stricter regulation of AI, but as Germany has taken over the EU Council presidency, its perspective is likely to have more influence on the Commission's regulatory choices. But following Germany's advice would have far-reaching negative implications for innovation in the EU. First, imposing stricter rules on lower-risk AI systems would achieve little in the way of consumer protection because these systems already pose little risk to consumers and existing consumer protection laws apply. It does not make sense to require AI-powered dating apps to undergo the same level of scrutiny as credit scoring tools.