France, Germany, and Italy have agreed on how artificial intelligence should be regulated, according to a joint paper seen by Reuters, which is expected to accelerate negotiations at the European level. The three governments support binding voluntary commitments for large and small AI providers in the EU, with sanctions to be applied for violations. They also want to create a new European authority to monitor compliance with AI regulations and advise national authorities.
The paper, published by Germany’s Economy Ministry and the Digital Affairs Ministry on Monday, is a significant step toward developing an agreed framework for AI regulation. The German government aims to balance opportunities and risks in its national strategy. “We aim to regulate the technology in such a way that it can be used to benefit people while ensuring the necessary protections against negative or dangerous impacts,” the paper reads.
This is a crucial challenge for regulators because AI technology constantly evolves and has little in common with existing regulatory models. The rapid pace of development and the wide diversity of cultural contexts make it difficult to develop universal rules that can be applied worldwide. This is particularly true because AI operates across borders and does not obey traditional laws.
As such, the EU’s recent introduction of an AI Act — intended to manage the risk of AI applications and avoid discriminatory effects while fostering innovation — is facing significant challenges. The three largest EU economies pushed back against the proposed code of conduct, arguing that it could create barriers to entry for smaller European AI providers, lead to diminished trust in their services, and eventually lower customer numbers.
In addition, they argue that the European Union’s approach to regulating AI is too broad and would undermine international competitiveness and technological sovereignty. There is also a danger that AI may be misinterpreted by regulators and caught up in areas that are not traditionally covered by regulations. For example, ecology could suffer if carbon capture systems using technology akin to generative AI are subject to environmental controls.
However, Germany’s Economy Minister Franziska Brantner said it was essential to have a common standard because of the risks posed by AI that do not yet exist. She added that it was essential to regulate the applications of AI rather than the technology itself and that a system of model cards should be established to track the implementation of the code of conduct. In addition, she said that the development of AI must be guided by principles, not rigid and bureaucratic rules. “This would give companies the freedom to use new technologies and invest in them, but with a clear set of guidelines,” she said. “It is essential that companies are allowed to test and use innovative technologies in a free market and that there are adequate incentives to make them more sustainable.” The German government will present its proposal to the European Commission, the European Parliament, and the EU Council.