A new report by Center for Data Innovation, a Washington-based think tank, has reportedly showed that a new law that has been designed to govern artificial intelligence (AI) in Europe might cost the EU economy €31 billion ($36 billion) over the next five years.
According to the report, the Artificial Intelligence Act, a proposed law that is put forth by the European Commission, will be the globe's most restrictive regulation of AI. It would not only stifle AI development and usage in Europe, but it will also cost EU consumers and businesses a lot of money, the report warned.
The Center for Data Innovation stated that a midsized or small enterprise, that has a turnover of €10 million, would face compliance expenses of up to €400,000 if it employed a high-risk AI system. The commission defines such systems as those that have the potential to jeopardize people's basic rights or safety.
Apparently, that classification applies to a wide range of possible uses, from essential infrastructure to vocational and educational training, and it imposes a slew of restrictions on firms before they can bring their products to market.
Ben Mueller, the author of the report and senior policy analyst at the Center for Data Innovation, stated that the Commission has frequently claimed that the draft AI legislation will help Europe's digital economy expand and innovate but a realistic economic analysis indicates that claim is deceptive at best.
Mueller went on to claim that the optimistic view is based primarily on shibboleths and opinions rather than logic and industry data.
Artificial intelligence (AI) is already being utilized to power software products for the likes of Facebook, Google, and Apple. However, politicians in Europe are concerned about its long-reaching impacts.
While the technology can be beneficial in areas including health care and climate modeling, it could also be utilized to create lethal autonomous weaponry or assign a social score to every person in a society.