A new law has been drafted to regulate artificial intelligence in Europe, this new law could end up costing the EU economy €31 billion over the next five years, according to a report by the Washington Data Innovation Center released on Sunday.
The Artificial Intelligence Act is a proposed law presented by the European Commission, the executive arm of the EU will be the “world’s most restrictive regulation on AI”, according to the center.
“This will not only limit the development and use of AI in Europe, but it will also have significant costs to EU businesses and consumers,” the organization said in the report.
The Center for Data Innovation argues that a small or medium-sized company with a turnover of 10 million euros would face costs of up to 400,000 euros if they implemented a high-risk AI system.
“This designation covers a wide range of potential applications from critical infrastructure to educational and vocational training, subjecting them to a series of requirements before companies bring them to market,” said the center.
“The Commission has repeatedly stated that draft AI legislation will support growth and innovation in Europe’s digital economy, but realistic economic analysis suggests that the argument is false at best,” said Ben Mueller.
AI is already being used to boost products for companies like Google, Apple and Facebook, but lawmakers in Europe are concerned about its impacts.
While the technology has the potential to be a force in healthcare or climate modeling, it can also be used in deadly weapons. The coming of AI could eradicate millions of jobs.
The Center for Data Innovation is part of the non-profit and non-partisan Information Technology and Innovation Foundation, which is supported by companies such as Amazon, Apple, Microsoft and NBCUniversal.