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Tag: government organizations – intl

  • ‘Serious concerns’: Top companies raise alarm over Europe’s proposed AI law | CNN Business

    ‘Serious concerns’: Top companies raise alarm over Europe’s proposed AI law | CNN Business

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    Dortmund, Germany
    CNN
     — 

    Dozens of Europe’s top business leaders have pushed back on the European Union’s proposed legislation on artificial intelligence, warning that it could hurt the bloc’s competitiveness and spur an exodus of investment.

    In an open letter sent to EU lawmakers Friday, C-suite executives from companies including Siemens

    (SIEGY)
    , Carrefour

    (CRERF)
    , Renault

    (RNLSY)
    and Airbus

    (EADSF)
    raised “serious concerns” about the EU AI Act, the world’s first comprehensive AI rules.

    Other prominent signatories include big names in tech, such as Yann LeCun, chief AI scientist of Meta

    (FB)
    , and Hermann Hauser, founder of British chipmaker ARM.

    “In our assessment, the draft legislation would jeopardize Europe’s competitiveness and technological sovereignty without effectively tackling the challenges we are and will be facing,” the group of more than 160 executives said in the letter.

    They argue that the draft rules go too far, especially in regulating generative AI and foundation models, the technology behind popular platforms such as ChatGPT.

    Since the craze over generative AI began this year, technologists have warned of the potential dark side of systems that allow people to use machines to write college essays, take academic tests and build websites. Last month, hundreds of top experts warned about the risk of human extinction from AI, saying mitigating that possibility “should be a global priority alongside other societal-scale risks such as pandemics and nuclear war.”

    The EU proposal applies a broad brush to such software “regardless of [its] use cases,” and could push innovative companies and investors out of Europe because they would face high compliance costs and “disproportionate liability risks,” according to the executives.

    “Such regulation could lead to highly innovative companies moving their activities abroad” and investors withdrawing their capital from European AI, the group wrote.

    “The result would be a critical productivity gap between the two sides of the Atlantic.”

    The executives are calling for policymakers to revise the terms of the bill, which was agreed upon by European Parliament lawmakers earlier this month and is now being negotiated with EU member states.

    “In a context where we know very little about the real risks, the business model, or the applications of generative AI, European law should confine itself to stating broad principles in a risk-based approach,” the group wrote.

    The business leaders called for a regulatory board of experts to oversee these principles and ensure they can be continuously adapted to changes in the fast-moving technology.

    The group also urged lawmakers to work with their US counterparts, noting that regulatory proposals had also been made in the United States. EU lawmakers should try to “create a legally binding level playing field,” the executives wrote.

    If such action isn’t taken and Europe is constrained by regulatory demands, it could hurt the region’s international standing, the group suggested.

    “Like the invention of the Internet or the breakthrough of silicon chips, generative AI is the kind of technology that will be decisive for the performance capacity and therefore the significance of different regions,” it said.

    Tech experts have increasingly called for greater regulation of AI as it becomes more widely used. In recent months, the United States and China have also laid out plans to regulate the technology. Sam Altman, CEO of ChatGPT maker OpenAI, has used high-profile trips around the world in recent weeks to call for co-ordinated international regulation of AI.

    The EU rules are the world’s “first ever attempt to enact” legally binding rules that apply to different areas of AI, according to the European Parliament.

    Negotiators of the AI Act hope to reach an agreement before the end of the year, and once the final rules are adopted by the European Parliament and EU member states, the act will become law.

    As they stand now, the rules would ban AI systems deemed to be harmful, including real-time facial recognition systems in public spaces, predictive policing tools and social scoring systems, such as those in China.

    The Act also outlines transparency requirements for AI systems. For instance, systems such as ChatGPT would have to disclose that their content was AI-generated and provide safeguards against the generation of illegal content.

    Engaging in prohibited AI practices could lead to hefty fines: up to €40 million ($43 million) or an amount equal to up to 7% of a company’s worldwide annual turnover, whichever is higher.

    But penalties would be “proportionate” and consider the market position of small-scale providers, suggesting there could be some leniency for startups.

    Not everyone has pushed back on the legislation so far. Earlier this month, Digital Europe, a trade association that counts SAP

    (SAP)
    and Ericsson

    (ERIC)
    among its members, called the rules “a text we can work with.”

    “However, there remain some areas which can be improved to ensure Europe becomes a competitive hub for AI innovation,” the group said in a statement.

    Dragos Tudorache, a Romanian member of parliament who led the bill’s drafting, said he was convinced that those who signed the new letter “have not read the text but have rather reacted on the stimulus of a few.”

    “The only concrete suggestions made are in fact what the [draft] text now contains: an industry-led process for defining standards, governance with industry at the table, and a light regulatory regime that asks for transparency. Nothing else,” he said in a statement.

    “It is a pity that the aggressive lobby of a few is capturing other serious companies in the net, which unfortunately undermines the undeniable lead that Europe has taken.”

    Brando Benifei, an Italian member of parliament who also led the drafting of the legislation, told CNN “we will listen to all concerns and stakeholders when dealing with AI regulation, but we have a firm commitment to deliver clear and enforceable rules.”

    “Our work could positively affect the global conversation and direction when dealing with artificial intelligence and its impact on fundamental rights, without hindering the necessary pursuit of innovation,” he said.

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  • How Meta got caught in tensions between the US and EU | CNN Business

    How Meta got caught in tensions between the US and EU | CNN Business

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    CNN
     — 

    Facebook-parent Meta has perhaps become the most high-profile casualty of a long-running privacy dispute between Europe and the United States — but it may not be the last.

    Meta has been fined a record-breaking €1.2 billion ($1.3 billion) by European Union regulators for violating EU privacy laws by transferring the personal data of Facebook users to servers in the United States. Meta said Monday it would appeal the ruling, including the fine.

    The historic fine against Meta — and a potentially game-changing legal order that could force Meta to stop transferring EU users’ data to the United States — isn’t just a one-off decision limited to this one company or its individual business practices. It reflects bigger, unresolved tensions between Europe and the United States over data privacy, government surveillance and regulation of internet platforms.

    Those underlying and fundamental disagreements, which have simmered for years, have now come to a head, casting a significant shadow over thousands of businesses that depend on processing EU data in the United States.

    Beyond its huge economic implications, however, the fine has once again highlighted Europe’s deep mistrust of US surveillance powers — right as the US government is trying to build its own case against foreign-linked apps such as TikTok over similar surveillance concerns.

    The origins of Meta’s fine this week trace back to a 2020 ruling by Europe’s top court.

    In that decision, the European Court of Justice struck down a complex transatlantic framework Meta and many other companies had been relying on until then to legally move EU user data to US servers in the ordinary course of running their businesses.

    That framework, known as Privacy Shield, was itself the outgrowth of European complaints that US authorities didn’t do enough to protect the privacy of EU citizens. At the time Privacy Shield was created, the world was still reeling from disclosures made by National Security Agency leaker Edward Snowden. His disclosures highlighted the vast reach of US surveillance programs such as PRISM, which allowed the NSA to snoop on the electronic communications of foreign nationals as they used tech tools built by Google, Microsoft, and Yahoo, among others.

    PRISM relied on a basic fact of internet architecture: Much of the world’s online communications take place on US-based platforms that route their data through US servers, with few legal protections or recourse for either foreigners or Americans swept up in the tracking.

    A 2013 European Parliament report on the PRISM program captured the EU’s sense of alarm, noting the “very strong implications” for EU citizens.

    “PRISM seems to have allowed an unprecedented scale and depth in intelligence gathering,” the report said, “which goes beyond counter-terrorism and beyond espionage activities carried out by liberal regimes in the past. This may lead towards an illegal form of Total Information Awareness where data of millions of people are subject to collection and manipulation by the NSA.”

    Privacy Shield was a 2016 US-EU agreement designed to address those concerns by making US companies certifiably accountable for their handling of EU user data. For a time, it seemed as if Privacy Shield could be a lasting solution facilitating the growth of the internet and a globally connected society, one in which the free flow of data would not be impeded.

    But when the European Court of Justice invalidated that framework in 2020, it reiterated longstanding surveillance concerns and insisted that Privacy Shield still didn’t provide EU citizens’ personal information the same level of protection in the US that it enjoys in EU countries, a standard required under GDPR, the EU’s signature privacy law.

    The loss of Privacy Shield created enormous uncertainty for the more than 5,300 businesses that rely on the smooth transfer of data across borders. The US government has said transatlantic data flows support the more than $7 trillion dollars of economic activity that occurs every year between the United States and the European Union. And the US Chamber of Commerce has estimated that transatlantic data transfers account for about half of all data transfers in both the US and the EU.

    The Biden administration has moved to implement a successor to Privacy Shield that contains some changes to US surveillance practices, and if it is fully implemented in time, it could prevent Meta and other companies from having to suspend transatlantic data transfers or some of their European operations.

    But it’s unclear whether those changes will be enough to be accepted by the EU, or whether the new data privacy framework could avoid its own court challenge.

    The possibility that US-EU data transfers may be seriously disrupted is refocusing scrutiny on US surveillance law just as the US government has been sounding its own alarms about Chinese government surveillance.

    US officials have warned that China could seek to use data collected from TikTok or other foreign-linked companies to benefit the country’s intelligence or propaganda campaigns, using the personal information to identify spying targets or to manipulate public opinion through targeted disinformation.

    But US moral authority on the issue risks being eroded by the EU criticism, a problem for the US government that may only be compounded by its own missteps.

    Just last week, a federal court described how the FBI improperly accessed a vast intelligence database meant for surveilling foreign nationals in a bid to gather information on US Capitol rioters and those who protested the 2020 killing of George Floyd.

    The improper access, which was not “reasonably likely” to retrieve foreign intelligence information or evidence of a crime, according to a Justice Department assessment described in the court’s opinion, has only inflamed domestic critics of US surveillance law, and could give ammunition to EU critics.

    The intelligence database at issue was authorized under Section 702 of the Foreign Intelligence Surveillance Act — the same law used to justify the NSA’s PRISM program and which the EU has repeatedly cited as a danger to its citizens and a reason to suspect transatlantic data sharing.

    While the US distinguishes itself from China based on commitments to open and democratic governance, the EU’s concerns about the US are not much different in kind: They come from a place of deep mistrust of broad surveillance authority and suspicions about the potential misuse of user data.

    For years, civil liberties advocates have alleged that Section 702 enables warrantless spying on Americans on an enormous scale. Now, the FBI incident may only further validate EU fears; add to the existing concerns that led to Meta’s fine; contribute to the potential unraveling of the US-EU data relationship; and damage US credibility in its push to warn about the hypothetical risks of letting TikTok data flow to China.

    If a new transatlantic data agreement is delayed or falls apart, Meta won’t be the only company stuck with the bill. Thousands of other companies may get caught in the middle, and the United States will have to hope nobody looks too closely at why while still trying to make a case against TikTok.

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  • CNN Exclusive: Biden says war with Russia must end before NATO can consider membership for Ukraine | CNN Politics

    CNN Exclusive: Biden says war with Russia must end before NATO can consider membership for Ukraine | CNN Politics

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    CNN
     — 

    President Joe Biden told CNN in an exclusive interview that Ukraine is not yet ready for NATO membership, saying that Russia’s war in Ukraine needs to end before the alliance can consider adding Kyiv to its ranks.

    Biden told CNN’s Fareed Zakaria that while discussion of Ukraine’s imminent membership in NATO was premature, the US and its allies in NATO would continue to provide President Volodymyr Zelensky and his forces the security and weaponry they need to try to end the war with Russia.

    Biden spoke to Zakaria ahead of his weeklong trip to Europe, which includes a NATO summit in Lithuania where Russia’s war in Ukraine and Zelensky’s push for NATO membership will be among the key issues looming over the gathering.

    “I don’t think there is unanimity in NATO about whether or not to bring Ukraine into the NATO family now, at this moment, in the middle of a war,” Biden said. “For example, if you did that, then, you know – and I mean what I say – we’re determined to commit every inch of territory that is NATO territory. It’s a commitment that we’ve all made no matter what. If the war is going on, then we’re all in war. We’re at war with Russia, if that were the case.”

    Biden said that he’s spoken to Zelensky at length about the issue, saying that he’s told the Ukrainian president the US would keep providing security and weaponry for Ukraine like it does for Israel while the process plays out.

    “I think we have to lay out a rational path for Ukraine to be able to qualify to be able to get into NATO,” Biden said, noting that he refused Russian President Vladimir Putin’s demands before the war for a commitment not to admit Ukraine because the alliance has “an open-door policy.”

    “But I think it’s premature to say, to call for a vote, you know, in now, because there’s other qualifications that need to be met, including democratization and some of those issues,” Biden said.

    On Friday, the White House announced that the US was sending Ukraine cluster munitions for the first time, a step taken to help bolster Ukraine’s ammunition as it mounts a counteroffensive against Russia. Biden told Zakaria that it was a “difficult decision” to give Ukraine the controversial ammunition, but that he was convinced it was necessary because Ukraine was running out of ammunition.

    The NATO meeting also comes as Sweden is seeking to join the Western alliance, a move that has faced resistance from Turkey and Hungary. Biden told Zakaria he was optimistic that Sweden would eventually be admitted to NATO, noting the key holdout, Turkey, is seeking to modernize its F-16 fleet, along with Greece, which has voted to admit Sweden.

    “Turkey is looking for modernization of F-16 aircraft. And (Greek Prime Minister Kyriakos) Mitsotakis in Greece is also looking for some help,” Biden said. “And so, what I’m trying to, quite frankly, put together is a little bit of a consortium here, where we’re strengthening NATO in terms of military capacity of both Greece as well as Turkey, and allow Sweden to come in. But it’s in play. It’s not done.”

    In the wide-ranging interview, Biden and Zakaria also discussed other key foreign policy challenges, including China, Saudi Arabia and Israel.

    Biden said that he’s confident Chinese President Xi Jinping wants to replace the US as the country with the largest economy and military capacity in the world, but he said that he believes the US can have a working relationship with Beijing.

    “I think there is a way to resolve, to establish a working relationship with China that benefits them and us,” Biden said. “And the last thing I’ll tell you, I also called him after he had that meeting with the Russians about this new relationship, etc. And I said, ‘This is not a threat. It’s an observation.’ I said, ‘Since Russia went into Ukraine, 600 American corporations have pulled out of Russia. And you’ve told me that your economy depends on investment from Europe and the United States. And be careful. Be careful.’”

    Biden said Xi didn’t argue with him and noted that China has “not gone full bore on Russia.”

    “He talks about nuclear war being a disaster, there is such a thing as security that’s needed,” Biden said of the Chinese leader. “So, I think there’s a way we can work through this.”

    Asked whether he would invite Israeli Prime Minister Benjamin Netanyahu to the White House, Biden said that Israel’s President Isaac Herzog was coming soon to the White House for a visit.

    In March, Biden criticized Netanyahu for his now-scrapped plan to overhaul the country’s judiciary, a rare public instance where the two allies were publicly at odds.

    Biden told Zakaria that he continued to believe a two-state solution was the correct path forward in the conflict between Israel and the Palestinians, and he criticized some members of Netanyahu’s cabinet for their views on Israeli settlements in the West Bank.

    “It’s not all Israel now in the West Bank, all Israel’s problem, but they are a part of the problem, and particularly those individuals in the cabinet who say, ‘We can settle anywhere we want. They have no right to be here, etc.,’” Biden said. “And I think we were talking with them regularly, trying to tamp down what’s going on and hopefully, Bibi will continue to move toward moderation and change.”

    Biden also defended his trip to Saudi Arabia last year, telling Zakaria a number of successes came from the visit, such as establishing Israeli overflights over Saudi Arabia. Asked whether the US would provide the Saudis with a defense treaty and civilian nuclear capacity, as Riyadh has requested, Biden said, “We’re a long way from there.”

    “Whether or not we would provide a means by which they can have civilian nuclear power, and/or be a guarantor of their security – I think that’s a little way off,” Biden said.

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