US warns EU's landmark AI policy will only benefit big tech

The US warned the European Union that its proposed law to regulate artificial intelligence would favor companies with the resources to cover the costs of compliance while hurting smaller firms, according to previously undisclosed documents.

The US analysis focuses mostly on the European Parliament version of the AI Act, which includes rules on generative AI. Some rules in the parliament law are based on terms that are "vague or undefined," according to the documents, which were obtained by Bloomberg News.

The analysis is Washington's most detailed position on the EU legislation that could set the tone for other countries writing rules for AI. One US concern is that the European Parliament focuses on how AI models are developed, whereas the US would prefer an approach that focuses on the risk involved in how these models are actually used. The analysis warns that EU regulations risk "dampening the expected boost to productivity and potentially leading to a migration of jobs and investment to other markets."