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EU Unveils Draft AI Code of Practice Focusing on Copyright and Safety for Companies

The European Commission revealed a draft code of practice on Thursday aimed at helping companies comply with the European Union’s evolving artificial intelligence regulations. The voluntary code emphasizes safeguarding copyright-protected content and implementing measures to reduce systemic risks linked to AI technologies.

Developed by 13 independent experts, the code is part of the broader EU AI regulatory framework. While signing up is optional, companies that do not join will miss out on the legal certainty offered to adherents. The rules will apply to major AI providers including Alphabet (Google), Meta (Facebook), OpenAI, Anthropic, Mistral, and others.

Under the code, signatories must publish summaries detailing the data sources used to train their general-purpose AI models. They are required to ensure that copyright-protected materials are only used appropriately, especially when employing web crawlers, and must take steps to prevent outputs that infringe copyright.

To address systemic risks, companies will also need to establish frameworks to identify and analyze potential hazards. While transparency and copyright guidelines apply to all general-purpose AI providers, specific safety and security provisions target providers of advanced models like OpenAI’s ChatGPT, Meta’s Llama, Google’s Gemini, and Anthropic’s Claude.

The EU’s AI Act, effective since last June, imposes strict transparency rules on high-risk AI systems and lighter obligations for general-purpose AI models. It also regulates AI use in military, crime, and security contexts. The new AI rules for large language models will become legally binding on August 2, with enforcement beginning a year later for new models. Existing models will have until August 2, 2027, to comply.

Henna Virkkunen, the EU’s technology commissioner, encouraged AI stakeholders to adopt the code, highlighting its collaborative design and its role in simplifying compliance with the EU AI Act. The code’s final approval by EU member states and the Commission is expected by the end of the year.

EU Antitrust Complaint Filed Against Google Over AI Overviews by Independent Publishers

A coalition of independent publishers has lodged an antitrust complaint with the European Commission, accusing Alphabet’s Google of abusing its dominance in online search through its AI-generated “AI Overviews” feature, which summarizes web content atop search results.


Summary:

  • The Complaint:
    The Independent Publishers Alliance, along with groups like the Movement for an Open Web and Foxglove Legal Community Interest Company, claim Google’s AI Overviews harm publishers by reducing traffic, readership, and revenue. These AI summaries appear above traditional search links in over 100 countries and started displaying ads last May.

  • Allegations:

    • Google is accused of misusing publishers’ original content without consent by feeding it into AI models that generate these summaries.

    • Google’s placement of AI Overviews at the top of search results allegedly disadvantages original publisher content, lowering their visibility.

    • Publishers cannot opt out of having their content used for AI training or summaries without also losing presence in Google Search results.

  • Legal Action and Requests:
    The publishers have asked the European Commission for an interim measure to prevent what they describe as “irreparable harm” to their businesses and competition in the news sector. Similar complaints have also been filed with the UK Competition and Markets Authority.

  • Google’s Response:
    Google argues it drives billions of clicks to websites daily and that new AI features in Search offer more discovery opportunities for content providers. It also disputes claims about traffic loss, attributing fluctuations to other factors like seasonal trends and search algorithm updates.

  • Broader Context:
    This EU complaint echoes a recent U.S. lawsuit by an educational technology company alleging that AI Overviews decrease demand for original content, causing drops in visitors and subscriptions.

  • Significance:
    The case raises important questions about the balance between AI innovation in search and the sustainability of independent journalism and publisher rights in the digital economy.

EU Firm on AI Rules Timeline Despite Industry Calls for Delay

The European Commission reaffirmed on Friday that it will adhere to the legal timeline for implementing the European Union’s groundbreaking Artificial Intelligence Act, rejecting recent appeals from major tech companies and some member states to postpone the rollout.

Key Points:

  • Major tech players including Alphabet (Google), Meta (Facebook), as well as European firms like Mistral and ASML, had urged the Commission to delay the AI Act by several years.

  • Commission spokesperson Thomas Regnier made clear at a press conference:

    • No pause, no grace period, and no stop-the-clock on the AI Act timeline.

    • Initial provisions took effect in February 2024.

    • Rules for general purpose AI models will begin enforcement in August 2024.

    • Requirements for high-risk AI models will start in August 2026.

  • The Commission indicated plans to simplify digital rules later this year, potentially reducing reporting obligations for smaller companies.

  • Concerns from companies center on the compliance costs and strict regulations, as the AI Act seeks to regulate a technology critical to sectors dominated by the US and China.