IVSZ Warns of High Cost of Compliance With EU AI Act
Photo by SOMKID THONGDEE / Shuttestock.com
Hungarian ICT association IVSZ warned that the European Union's draft Artificial Intelligence Act could hold back the advance of AI development with "unjustifiably strict rules" and "high compliance burdens" in a statement issued on Wednesday, according to a report by state news wire MTI.
As the details of the draft AI Act are hammered out by EU lawmakers, IVSZ said industry insiders expect the legislation could add up to EUR 300,000 to costs for companies involved in "high-risk" AI development that affects critical infrastructure, education or public services. Total compliance costs could reach EUR 5 bln-12 bln by 2025, it added.
Those higher costs could put startups and SMEs involved in high-risk AI development at a competitive disadvantage and even hold back innovation, IVSZ said.
IVSZ welcomes AI regulation, chairman Balázs Vinnai said, but EU or government support could be required to help startups and SMEs comply with stricter rules.
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