Forging Digital Alliances Rather Than Barriers: A Key Component of the EU's Ambitious Digital Strategy
The European Commission has recently unveiled a data strategy and a white paper on artificial intelligence (AI), aiming to bolster Europe's success in the digital economy. The strategy, known as "European data spaces," proposes a common digital environment with shared technical and legal rules for data sharing within Europe.
The plan includes measures to improve data security, expand access to high-value data sets, and implement policies like data localization, which would require companies to store and process data domestically. However, these protectionist measures could potentially undermine Europe's ambition to be a global leader in AI, as they could cut off foreign cloud providers and impose additional regulatory costs on businesses using AI.
To strengthen digital competition, the EU is advised to recalibrate its efforts and work more closely with its allies, including the United States, Canada, Japan, and key European states that are leading in digital innovation and policy such as Germany, France, the Netherlands, Sweden, and Finland. Collaboration also involves major innovation regions like Baden-WΓΌrttemberg and Hessen in Germany, which actively foster AI and digital transformation projects.
The Commission is encouraged to build on the parts of its plan that strengthen European competitiveness, such as investing in digital skills and adopting a light-touch regulatory approach in the digital economy. The white paper also notes that an extensive body of product safety and liability legislation already applies to AI, suggesting that industry-led standards and best practices are a better approach to addressing unjustified fears about AI.
The Commission is advised to scale back the more protectionist and interventionist measures in its plan, as some calls for additional compliance mechanisms, governance structures, and labelling regimes for AI are based on unjustified fears about AI. Instead, collaboration with allies and industry leaders is considered beneficial for pursuing joint initiatives in AI, open data, and the Internet of Things.
The EU's digital agenda aims to maximize European success in the data economy, and the Commission's calls for a new legislative framework for AI could be a step towards achieving this goal. However, it is crucial that the EU strikes a balance between protecting its citizens' data and fostering innovation in the digital economy.
In conclusion, the European Commission's data strategy and AI white paper present a significant opportunity for Europe to strengthen its position in the global digital economy. By working closely with allies, focusing on industry-led standards, and adopting a light-touch regulatory approach, the EU can foster innovation, improve data security, and expand access to high-value data sets, thereby enhancing European competitiveness in the digital economy.
