AI Act adopted - both too late and too early? 

The AI Act has apparently been adopted by the European Parliament (March 13, 2024). It remains to finalize the language and for the Council of Ministers to formally adopt the act. There is a lot to say about the proposal, the negotiations and the final outcome - but at least now the legal framework for AI is in place.

Not everything happens at once. In fact, the Union has already been gifted with the European Artificial Intelligence Agency in February to work on the AI Act. The AI Agency will have a number of tasks, including establishing templates to reduce the administrative burden for those subject to the new regulation.  

Since November, the Commission has also offered the possibility of working on the AI Act through the AI Pact, which is intended to "encourage and support businesses in planning the measures provided for".  

Templates and pacts - it certainly doesn't look like it will be easy to get it right. The next step is for the prohibitions in the AI Act to take effect six months after its formal entry into force. This will be followed by a series of dates when different parts of the Act will come into force over the next few years.  

Although the government's AI Commission has been in the works for a while, it was in any case too late to meaningfully influence European legislation. Nevertheless, the Commission is welcome and with the AI Act in place, it is time to put the AI Commission's work into high gear.  

The question is also whether the EU is too early with the AI Act. Of course, it would have been unfortunate with an overly fragmented internal market if several countries had gone ahead with too different legislation on AI. Now, the proponents of the AI Act also hope that it will become normative for other countries and on the international stage, thus helping to make the market more predictable and spreading European values. The AI field is now developing rapidly and can be strengthened by having the regulatory framework in place. However, there are concerns that it may be too strict and that investments may end up outside Europe. The EU should be prepared for the fact that rapid developments may require rapid changes to the regulatory framework to ensure that the development and use of AI flourishes in the EU.  

Sometimes, new technology can benefit from competition and creativity in how laws are designed. One example is drones. Sweden was an early adopter of drone regulations, but as developments took off, other countries adopted smarter regulations and Sweden sat on the sidelines waiting for EU rules. The AI issue is now playing out at the international level - between the EU and the US in the Trade and Technology Council, the UK initiative with a summit and in the UN. Other countries are certainly now shaping their initiatives and looking to the EU - but perhaps not copying. As with Sweden and drones, has the EU legislated too soon? It remains to be seen.  

It is unclear what will happen in the field of AI - but it is important to be prepared for rapid developments in Sweden, the EU and internationally. Laws and regulations must also follow. The AI Commission can certainly help to clarify where Sweden stands today and set the direction. In any case, it is not too early. The AI Commission also seems to have a slight head start on the AI Agency! Use it to develop a Swedish and, as far as possible, an innovation-friendly interpretation. Take the chance while there is still time! 

Fredrik Sand
Industrial policy expert