The article explores the multifaceted impact of the EU AI Act on innovation. While some argue that regulation stifles innovation, experts from BCG contend that it could accelerate the professionalization of the AI sector, facilitating a more responsible and efficient adoption of AI technologies.
Contrary to the fears expressed by some companies, particularly startups and SMEs, the act may not be a significant hindrance. High-risk AI systems, which are numerous and found across diverse sectors, are not necessarily impeded but rather benefit from increased scrutiny and structured development practices.
The article refutes the simplistic narrative of Europe as a regulator versus the US and China as innovation hubs, pointing out that the US already has more than 70 local AI regulations.
The success of the AI Act hinges on its implementation, which requires active engagement from businesses. Companies need to collaborate with regulators to ensure practical implementation and avoid potential roadblocks. The banking sector is provided as an example where collaborative dialogue can prevent overzealous application of “high-risk” classifications.
The article concludes that effective cooperation between businesses and regulators, similar to that observed during the COVID-19 vaccine rollout, is crucial to harness the full potential of the AI Act and pave the way for responsible AI development and innovation.