The European Union’s “fragmented regulatory structure” is holding back innovation in artificial intelligence (AI), Meta CEO Mark Zuckerberg and Spotify CEO Danie Ek said in a joint statement. statement published on Friday. The two tech leaders added that the EU’s AI regulatory framework is “riddled with inconsistent implementations,” hampering the ability of companies in the region to ride the AI wave.
They noted:
“Instead of clear rules that inform and guide how companies do business across the continent, our sector is faced with overlapping regulations and inconsistent guidance on how to comply.”
The two founders warned that without “urgent changes” the EU would be left behind in the AI race.
Making the Case for Open Source AI
According to the two founders, open source AI, where models and tools are publicly available under permissive licenses, offers a significant opportunity for European organizations. Open source AI can democratize access to advanced technologies, avoiding the concentration of power among a few major players and fostering a more competitive and innovative environment.
They pointed out that much of the internet and major tech companies already rely on open source technologies, suggesting that the future of AI development will also benefit from open collaboration and transparency.
They said:
“We believe the next generation of ideas and startups will be built with open source AI, as it allows developers to integrate the latest innovations at low cost and gives institutions more control over their data.”
Meta, in particular, has embraced this model by open-sourcing several of its AI technologies, including its large Llama language models. These models have already been used by public institutions and researchers to advance medical research and preserve endangered languages.
Similarly, Ek attributes Spotify’s success to its early use of AI.
The CEOs stressed that with Europe having a significant number of open source developers, the continent is well placed to benefit from this approach to AI development.
Regulatory challenges
According to the CEOs, while regulation is necessary, preemptive regulation of emerging technologies like AI would do more harm than good. They noted:
“Complex and risk-averse European regulations could prevent it from taking advantage of big bets that can translate into big rewards.”
The founders also discussed the regulatory challenges facing European businesses, highlighting the uneven implementation of the EU’s General Data Protection Regulation (GDPR). While the regulation was intended to “harmonize the use and flow of data” across the region, they said, regulators are struggling to decide how to enforce the law.
For example, Meta was ordered to delay training its models on content shared publicly by Facebook and Instagram until regulators figure out how to enforce GDPR. In the short term, these delays create uncertainty.
In Meta’s case, this delay means that AI models will not reflect “the collective knowledge, culture and languages of Europe.” The delay also prevents Europeans from using the latest AI products. For example, Meta will not be able to market its Llama model in the EU.
The statement noted:
“The harsh reality is that laws designed to increase Europe’s sovereignty and competitiveness are having the opposite effect.”
A call for change
CEOs say the EU’s inconsistent AI regulatory framework has already caused a brain drain, with most AI developers working outside the region. This trend will only accelerate and the region will miss a “once-in-a-generation” opportunity unless Europe actively changes its approach.
“Europe needs a new approach with clearer policies and more consistent enforcement,” they stressed. A simplified regulatory regime will not only accelerate the growth of open source AI, but also provide support to European developers, they said.
The statement noted:
“While Spotify and Meta use AI in different ways, we agree that thoughtful, clear, and consistent regulation can foster competition and innovation while protecting people and giving them access to new, empowering technologies.”
