Meta Declines Quick Entry into EU AI Pact, Preferring to Wait for New Law Clarity!

Meta Platforms Inc. has decided not to immediately join the European Union’s voluntary artificial intelligence safety pledge, known as the AI Pact, which is intended as a temporary measure before the full implementation of the AI Act in 2027.

A Meta spokesperson stated that the company focuses on compliance under the AI Act, highlighting a preference to prioritize meeting the law’s requirements over voluntary commitments. Despite this, Meta has left the door open to joining the AI Pact initiative at a later stage.

If all countries adopt regulation akin to the EU AI act, the value of AI will explode and its contribution to GDP will skyrocket. The need to license data will create entirely new trillion dollar industries. Don’t let Meta take that away from you.

— TARNISHED MISHA (@yaboimisha) September 19, 2024

Meta’s decision contrasts with the positions of other major tech companies, such as Microsoft Corp. and Alphabet Inc.’s Google, which have confirmed through spokespeople that they will sign the pledge.

Meta’s AI model, Llama, is distinguished by its open-source nature, allowing users to repurpose the technology with relatively little control from the developer.

This design choice potentially complicates compliance with the EU’s requirements to map and mitigate risks associated with the AI tools, particularly in high-risk situations such as education, employment, and policing.

I see Meta going rogue on EU’s AI safety pledge. Guess they’re betting on their own safety net, but wouldn’t it be wiser to join forces instead of going solo?

— Michel Caron (@CEObyDayMCat) September 24, 2024

France’s open-source AI startup Mistral, valued at €5.8 billion ($6.5 billion) in June, has also opted not to sign the pledge.

The EU’s voluntary AI Pact asks companies to follow practices that reflect the principles of the AI Act, even before the law becomes binding. The European Commission, the EU’s executive branch, plans to unveil the complete list of signatories shortly.

An opportunity for EU competitors to earn market share (e.g. Mistral, etc)

— Marco Combetto 🇮🇹🇪🇺🇺🇦 (@marcomb) July 19, 2024

The AI Pact is nonbinding, meaning companies will not face direct consequences for not signing. However, firms that do sign could avoid potential conflicts with the EU, which has previously named and shamed technology companies that refuse to participate in voluntary initiatives.

The EU’s approach seeks to establish regulatory standards without stifling innovation in the fast-developing AI field, aiming to avoid ceding the industry to U.S. firms.

It’s sad Europe lags behind every time. Business in Europe can’t catch up for this reason

— arskuza (@arskuza) July 20, 2024

Historically, the EU has not hesitated to call out companies that do not align with its voluntary codes.

Elon Musk’s Twitter Inc., now rebranded as X, left the EU’s nonbinding anti-disinformation code of practice in 2023.

Joining the AI Pact could help companies “build trust among customers, investors, and regulators,” according to Ceyhun Pehlivan, co-lead of tech and intellectual property at Linklaters’ law practice in Madrid.

Companies that opt-out might face peer pressure and risk being singled out for non-participation. The voluntary nature of the AI Pact means that, while no legal repercussions exist for non-signatories, the reputational impact could be significant.

They fear the regulation less for the European market on it’s own, but more for the spreads via the Brussels effekt. Other regions might see that it works and immitate.

— Jørn Tychsen (@JornTychsen) July 19, 2024

In July, Meta announced that it would delay the introduction of its next generation of models in the EU, citing the unpredictable nature of the European regulatory environment.

As the EU works to establish AI regulation standards, the differing stances of major tech players underscore the complexities of balancing compliance, innovation, and market positioning.

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