The European Union is concentrating on bringing out a proposal regulating artificial intelligence. The goal is to create a framework for artificial intelligence (AI) research, development, and application that will enable Europe to fully utilize this technology as a location for globally competitive businesses while also being based on fundamental European principles.
Artificial intelligence has enormous economic potential as a driver of Europe’s future prosperity. Some studies project additional annual economic growth of up to 1.3 percentage points if successfully implemented. In contrast, others predict a rise in productivity of up to 35% of European labor by 2035. This is seen, for instance, in the private investments made in AI companies, which account for 53% of worldwide investments, 23% of which are made in China, and only 6% in Europe. While the United States and China are already using AI to boost their economies, Europe is still lagging, as evidenced by, for instance, the lack of investment in AI firms.
This makes it quite clear that the Artificial Intelligence Act must also support Europe’s capability for artificial intelligence innovation.
Top AI organizations across Europe have studied the likely impacts of the soon-to-be-enacted Artificial Intelligence Act (AI Act) on the European startup market. AI Austria was a co-initiator of this study. Due to the upcoming act, most European AI startups think creating AI on that continent will be more challenging. Another 16% are considering moving outside the EU or stopping all AI development. Simply put, this is one of the investigation’s most significant findings. Downloading the publication will provide you with more information.
Effects of AI on European Markets
The impact of artificial intelligence on our world is already profound in many ways, and its significance in our daily lives and the Economy is only growing. Amid strong competition among countries to benefit from it, two global goliaths—the United States and Asia—have appeared on the scene.
Many people believe that AI will significantly increase productivity and economic growth. Analyzing enormous amounts of data makes it possible to boost the effectiveness with which decisions are made dramatically and the speed at which tasks are completed. It also can open up new revenue sources and develop new markets, industries, and goods to boost consumer demand.
But there is a chance that artificial intelligence may significantly upset both business and society. Some fear that it could result in the creation of supercorporations, which are centers of wealth and knowledge, and that this could hurt the Economy as a whole. This latter tendency could widen the gap between developed and developing countries and increase the demand for workers with particular
skills while simultaneously displacing others, which could substantially impact the labor market. It may also widen the gap between developed and developing countries. The potential for it to increase the income gap, reduce wages, and reduce the tax base are further issues raised by experts.
Although these worries are still legitimate, experts disagree on whether or how much the associated hazards will materialize. They are not a given, and thoughtful policy may be able to support the advancement of AI while simultaneously limiting its negative effects. The European Union (EU) can strengthen its position in the global Economy and steer artificial intelligence (AI) in a direction that will benefit its people and Economy.
Evolving AI and its Repercussions
Computers capable of carrying out cognitive activities in a manner comparable to that of a human being are referred to as having “artificial intelligence” (AI). Learning, understanding, determining, and interacting are some of these tasks. It can take many different forms, including a part of a (production) process, a finished product, or technical support (in the form of algorithms). The likelihood that AI will significantly change how people live and work in contemporary civilizations is increasing. Customers may still have smart assistants like Siri perform various tasks for them now on their devices.
Businesses are eager to find ways to take advantage of this strange phenomenon’s potential, and employees are becoming more and more interested in how AI will affect their livelihoods. Artificial intelligence technology, from the perspective of institutions like the OECD and the European Commission, has the potential to transform manufacturing and help address pressing global issues. The majority of individuals in the world share this opinion.
Japan, South Korea, and the United States were at the forefront of research during this time, accounting for over two-thirds of all patent applications about artificial intelligence (AI). China, South Korea, and Chinese Taipei have all experienced a sharp increase in the number of patents for artificial intelligence technologies compared to their prior performance. The rate at which EU Member States contributed to artificial intelligence-related inventions between 2010 and 2015 was 12%, down from the 19% reported during the decade before.
According to a report on artificial intelligence released by the World Intellectual Property Organization (WIPO) in 2019, there has been an increase in the number of academic articles published on the topic since the turn of the century, which was followed by an increase in the number of patent applications submitted between 2013 and 2016. This could indicate a shift from theoretical research toward applying AI technologies in real-world contexts, such as businesses and other for-profit entities.
Effects of the artificial intelligence sector on the Economy
According to the World Intellectual Property Organization (WIPO), the rapid growth of deep learning (which is used, for example, in speech recognition) and neural networks, as well as the enormous number of patents in the field of machine learning, shows that this is currently the most important application area for AI. The OECD believes that deep learning is another element contributing to recent advances in artificial intelligence, which uses artificial neural networks.
According to some, the European Union (EU) falls significantly behind other nations in the development of artificial intelligence (AI) because it lacks size, as seen by the absence of a sizable data set that is consistent across the board. This is a crucial prerequisite for a productive AI ecosystem. Businesses in the European Union (EU) utilize artificial intelligence (AI) less frequently than those in the United States and Asia, and there are fewer patents and investments in AI than in other regions. However, by using its high value-added manufacturing and industry base and employing its highly skilled population, the EU has the potential to strengthen its standing on the global stage. It may use tools like standards to its advantage to achieve this aim. It can also use its regulatory capacity and influence to become a global leader in AI governance. Some people think that the industrialized nations of the EU, especially those in northern Europe, will triumph in the ongoing artificial intelligence revolution.
The European Commission says developing European efforts in this incredibly promising sector requires a strong, coordinated framework. Many EU Member States are aware of the gravity of this situation. The European Commission claims this is required given the severe global competition in AI. Furthermore, it considers AI one of the 21st century’s most significant technologies.