The U.S. and the EU regulate AI differently
Spanning 113 articles and roughly 50,000 words, the EU AI Act is the first of its kind globally to provide comprehensive legislation on AI. Meanwhile, the U.S. has not yet passed any federal laws on the matter, relying instead on executive orders , guidance from agencies like the National Institute of Standards and Technology and the Federal Trade Commission , and a growing collection of…
The EU AI Act, spanning over 113 articles, is the first comprehensive piece of legislation globally on artificial intelligence, while the U.S. has yet to pass federal AI laws, relying instead on executive orders, agency guidance, and state-level bills. The EU's AI Act imposes robust regulations, including bans on eight categories of AI practices, such as social scoring, real-time facial recognition in public spaces for law enforcement, and emotion recognition in workplaces and schools.
Conversely, the U.S. has no outright bans on AI technology categories; instead, it focuses on specific AI uses, like tenant screening and housing advertising. In terms of copyright laws, the U.S. follows the Fair Use doctrine, while the EU employs a closed list of exceptions under the 2019 DSM Directive. Compliance costs for high-risk AI models in the EU are estimated to be roughly two to three times higher than in the U.S., leading many startups to relocate their headquarters to the U.S. for lower compliance costs.
The EU is under pressure to reconsider its regulation approach, aiming to simplify rules and reduce costs to maintain competitiveness in global AI innovation.
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