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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.