{"id":11216,"date":"2024-03-15T10:45:00","date_gmt":"2024-03-15T14:45:00","guid":{"rendered":"https:\/\/ibkrcampus.eu\/uncategorized\/the-european-parliament-approved-a-legal-framework-to-limit-what-ai-can-do\/"},"modified":"2024-03-19T10:41:37","modified_gmt":"2024-03-19T10:41:37","slug":"the-european-parliament-approved-a-legal-framework-to-limit-what-ai-can-do","status":"publish","type":"post","link":"https:\/\/www.interactivebrokers.eu\/campus\/traders-insight\/securities\/macro\/the-european-parliament-approved-a-legal-framework-to-limit-what-ai-can-do\/","title":{"rendered":"The European Parliament Approved A Legal Framework To Limit What AI Can Do"},"content":{"rendered":"\n

What\u2019s going on here?<\/strong><\/h2>\n\n\n\n

The European Parliament approved<\/a> a legal framework limiting AI’s role in society, presumably after spending an evening working through a dystopian film library.<\/p>\n\n\n\n

What does this mean?<\/strong><\/h2>\n\n\n\n

Decades of literature have told us that AI agents aren\u2019t exactly driven by a desire to protect humanity. And according to today\u2019s scientists and tech wizards, that concern isn\u2019t reserved for the world of fiction. So now, members of the European Parliament are pushing for specialized laws that would prevent certain actions, like detecting emotions in workplaces and schools, making decisions in high-stakes situations like job applications, and scraping CCTV to build facial recognition databases. Any companies that go against the grain could be landed with fines up to \u20ac35 million ($37.7 million) or \u2013 oddly specifically \u2013 7% of their worldwide sales.<\/p>\n\n\n\n

\"EU<\/figure>\n\n\n\n

<\/a>Past performance is not indicative of future results<\/p>\n\n\n\n

Why should I care?<\/strong><\/h2>\n\n\n\n

Zooming out:<\/em><\/strong> Pandora\u2019s box.<\/em><\/p>\n\n\n\n

The European Parliament is mainly concerned about AI\u2019s ability to replace humans in important decision-making roles, which could lead to misinformation, bias, and privacy breaches. But lawmakers want to find the sweet spot, where AI could enhance human life and companies\u2019 productivity by automating certain tasks without, you know, violating basic rights. Plus, come down too hard and Europe could fall behind economically \u2013 not least because foreign companies, bound by less stringent rules, might avoid the region if they\u2019d be more restricted there.<\/p>\n\n\n\n

The bigger picture:<\/em><\/strong> High standards cost.<\/em><\/p>\n\n\n\n

The US is drafting its own set of regulations, too \u2013 trailing behind China, where AI product approvals are already in place. But Europe has a history of sticking to the stricter side, no matter whether the matter is privacy, the environment, food safety, or consumer rights. And because regulations come with a cost that businesses need to foot, that partly explains why Europe\u2019s stock markets tend to be valued lower than stateside equivalents. So unless European AI rules turn uncharacteristically lax, don\u2019t count on that gap closing up anytime soon.<\/p>\n\n\n\n

—<\/p>\n\n\n\n

Originally Posted March 14, 2024 – The European Parliament Approved A Legal Framework To Limit What AI Can Do<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

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