AI Startups Advocate Against New Regulation Unlike Google and Microsoft

While big tech companies such as Google and Microsoft have called for government intervention in regulating AI, AI startups are less enthusiastic about the idea. Smaller AI companies either oppose regulation or only want to operate within loose guidelines. Startups face greater difficulties in surviving, especially in such a competitive field. Furthermore, regulations can get in the way of innovating new applications, as evidenced by a Chinese government block on Character.AI, the chatbot service that allows people to converse with personalities and characters. The European Union has passed a draft of its AI Act, which classifies AI systems based on risk. High-risk systems, such as AI hiring tools and exam scoring software, would have to comply with greater standards. Generative AI systems like ChatGPT would require identification of the system’s AI-generated output, and predictive policing and biometric identification systems would be banned. Some critics find the AI Act too restrictive, forcing AI startups out of the EU. Alexandre Lebrun, the CEO of Nabla, a Paris-based AI company, believes that while regulation is necessary, it should be only on the intent of the model instead of dictating how to create them.