Europe Will Sabotage Itself by Over-Regulating AI, Venture Capitalist Warns

The European Union is moving closer to enacting new rules around artificial intelligence — a step that some in the industry say will put necessary safeguards on a powerful technology, and that others believe will hurt the region’s economy.

(Bloomberg) — The European Union is moving closer to enacting new rules around artificial intelligence — a step that some in the industry say will put necessary safeguards on a powerful technology, and that others believe will hurt the region’s economy. 

Texas-based venture capitalist Joe Lonsdale said Europe risks committing “suicide” by over-regulating AI. Lonsdale is the managing partner of 8VC and helped found Palantir Technologies Inc., the data-analysis company that uses AI and works closely with militaries and governments. 

Lonsdale said the EU could “basically prevent the industrial revolution from happening,” during an interview with Bloomberg Television at Founders Forum as part of London Tech Week. He warned that the new regulations send the signal that Europe is “not part of the future of the world, innovationwise.” 

 

Efforts to regulate the burgeoning AI industry have varied globally, as politicians attempt to draft legislation that keeps up with the rapid pace of technological development. Even as many experts call for more safeguards, the EU AI bill has garnered criticism from industry figures, including OpenAI Inc.’s Sam Altman, who said that companies could stop operating in the region if it’s too hard to comply with the rules. 

Lonsdale said that as “Europe commits suicide with its regulation and stops any development there, maybe the UK gets it right and doesn’t do so.” Post-Brexit Britain has distanced itself from the rest of the continent and has worked to position itself as a development hub.

Lonsdale also said that considerations of existential threats from AI should be taken seriously, but that excessive guard rails could lead to China getting to “shape the future of the world more in the direction that they want.” 

 

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