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Public Interest AI for Europe? Shaping Europe’s Nascent Industrial Policy - AI Now Institute
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Shaping Europe’s Nascent Industrial Policy - AI Now Institute</title> <link rel="canonical" href="https://ainowinstitute.org/general/public-interest-ai-for-europe-shaping-europes-nascent-industrial-policy" /> <meta property="og:locale" content="en_US" /> <meta property="og:type" content="article" /> <meta property="og:title" content="Public Interest AI for Europe? Shaping Europe’s Nascent Industrial Policy" /> <meta property="og:description" content="Artificial Intelligence occupies a curious space in European policy discussions. Its position as a laggard in the AI “race” has become a symbol for the continent’s real and perceived lack of competitiveness and digital sovereignty, especially compared to the US and China. At the same time, AI is also hailed as a solution for a […]" /> <meta property="og:url" content="https://ainowinstitute.org/general/public-interest-ai-for-europe-shaping-europes-nascent-industrial-policy" /> <meta property="og:site_name" content="AI Now Institute" /> <meta property="article:published_time" content="2024-07-01T13:06:45+00:00" /> <meta property="article:modified_time" content="2024-07-01T13:58:09+00:00" /> <meta property="og:image" content="https://ainowinstitute.org/wp-content/uploads/2024/03/chap3-1024x555.png" /> <meta property="og:image:width" content="1024" /> <meta property="og:image:height" content="555" /> <meta property="og:image:type" content="image/png" /> <meta name="author" content="Frederike Kaltheuner" /> <meta name="twitter:card" content="summary_large_image" /> <meta name="twitter:image" content="https://ainowinstitute.org/wp-content/uploads/2024/03/chap3.png" /> <meta name="twitter:creator" content="@AINowInstitute" /> <meta name="twitter:site" content="@AINowInstitute" /> <meta name="twitter:label1" content="Written by" /> <meta name="twitter:data1" content="Frederike Kaltheuner" /> <meta name="twitter:label2" content="Est. reading time" /> <meta name="twitter:data2" content="4 minutes" /> <script type="application/ld+json" class="yoast-schema-graph">{"@context":"https://schema.org","@graph":[{"@type":"Article","@id":"https://ainowinstitute.org/general/public-interest-ai-for-europe-shaping-europes-nascent-industrial-policy#article","isPartOf":{"@id":"https://ainowinstitute.org/general/public-interest-ai-for-europe-shaping-europes-nascent-industrial-policy"},"author":{"name":"Frederike Kaltheuner","@id":"https://ainowinstitute.org/#/schema/person/9691f7065086a0e066bc4ee014b30e48"},"headline":"Public Interest AI for Europe? 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She regularly comments on emerging technologies in the international press and has given TV and radio interviews for AlJazeera, CNBC, BBC World News, BBC News, Tagesschau, Deutschlandfunk, WDR5 and BBC Radio 4’s Today programme, among others. She is also the editor of Fake AI, a collection of essays on AI hype, pseudoscience, and snake oil. Her writing and commentary has appeared in The Guardian, Gizmodo, ZEIT Online and POLITICO Europe. Together with Nele Obermüller she wrote a book on data and justice (Nicolai Publishing, 2018, German). In 2019, she was awarded The Coaching Fellowship for young women leaders of impact. She was also a 2016 Transatlantic Digital Fellow on cybersecurity and platform regulation with the Global Public Policy Institute in Berlin and New America Foundation in D.C. Previously, she has worked with the Centre for Internet and Human Rights, hosted the pilot for a TV show on German national TV and was a contributing writer for the French-German Philosophie Magazin. Frederike holds an MSc in Internet Science from the University of Oxford and a BA in Liberal Arts with a focus on Philosophy and Politics from the University College Maastricht. She was a 2016 research associate with the DATACTIVE collective at the University of Amsterdam and a 2010-2011 visiting student at the philosophy department of Bogaziçi University in Istanbul. 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produces diagnosis and actionable policy research on artificial intelligence.</p> </div> </div> </div> <p class="options-bio mobile py-1 alignwide">The AI Now Institute produces diagnosis and actionable policy research on artificial intelligence.</p> </div> </header> <main id="page-wrapper" class="d-flex flex-column flex-grow-1"> <div class="entry-content max-width-container"> <div class="d-grid grid alignwide wide-max-width my-2 my-md-3"> <div class="single-post-template grid-col-12"> <div id="post-header" class="post-header grid-col-12"> <div class="d-grid grid grid-gap-four"> <div class="grid-col-12 grid-md-col-6 p-relative"> <div class="wrapper-4x3 border-radius-large p-relative"> <img width="1734" height="939" src="https://ainowinstitute.org/wp-content/uploads/2024/03/chap3.png" class="grayscale contrast wp-post-image" alt="" decoding="async" fetchpriority="high" srcset="https://ainowinstitute.org/wp-content/uploads/2024/03/chap3.png 1734w, https://ainowinstitute.org/wp-content/uploads/2024/03/chap3-300x162.png 300w, https://ainowinstitute.org/wp-content/uploads/2024/03/chap3-1024x555.png 1024w, https://ainowinstitute.org/wp-content/uploads/2024/03/chap3-768x416.png 768w, https://ainowinstitute.org/wp-content/uploads/2024/03/chap3-1536x832.png 1536w" sizes="(max-width: 1734px) 100vw, 1734px" /> <div class=" border-radius-large p-absolute w-100 h-100 top-0 left-0 mix-blend-mode-overlay border-radius-large opacity-80" style="background-color:#222222"></div> </div> </div> <div class="grid-col-12 grid-md-col-6 d-flex flex-column align-self-center ml-lg-4"> <div class="d-flex flex-row flex-wrap taxonomy-label"><h4 class="mr-1 mr-lg-2"><a href="https://ainowinstitute.org/research-areas/ai-industrial-policy">AI Industrial Policy</a></h4></div> <h1 class="line-height-100 mb-2 mt-1 medium mr-lg-2">Public Interest AI for Europe? Shaping Europe’s Nascent Industrial Policy</h1> <div class="d-flex flex-row flex-wrap mt-2 justify-content-between w-lg-90"> <div class="post-author max-w-lg-350px"> <span class="mb-0"><span class="addtl-authors d-inline-flex mono mb-0"><p class="mono mb-0"><a href="https://ainowinstitute.org/author/frederike">Frederike Kaltheuner</a></p></span> , <span class="addtl-authors d-inline-flex mono mb-0"><p class="mono mb-0"><a href="https://ainowinstitute.org/author/leevi">Leevi Saari</a></p></span> </span> </div> <p class="mono mb-0 mt-1 mt-md-0">Jul 1, 2024</p> </div> </div> </div> </div> <div class="d-grid grid mt-2 mt-lg-4"> <div class="post-container d-grid grid grid-col-12 mx-0 mx-xl-3"> <div class="post-body grid-col-12 d-grid grid mt-3 mt-lg-5"> <div class="post-content grid-col-12 grid-lg-col-8 mx-0 ml-lg-2 mr-lg-3"> <p></p> <p>Artificial Intelligence occupies a curious space in European policy discussions. Its position as a laggard in the AI “race” has become a symbol for the continent’s real and perceived lack of competitiveness and digital sovereignty, especially compared to the US and China. At the same time, AI is also hailed as a solution for a whole range of complex problems the continent is facing: the climate crisis, slowing economic growth, and deteriorating public services.</p> <p>Enter, Europe’s nascent industrial policy on AI: strategies to guide government spending, investment, and regulatory strategies focused on the AI industry. After the DSA, the DMA and the AI Act have been adopted or entered into force, we expect that the next Commission’s main focus will be on digital industrial policy (and enforcement). This is part of a broader turn towards economic statecraft we have documented globally (see our previous work <a href="https://ainowinstitute.org/ai-nationalisms">here</a>)</p> <p>Europe’s <a href="https://ainowinstitute.org/publication/to-innovate-or-to-regulate-the-false-dichotomy">newfound interest</a> in industrial policy comes with opportunities and unintentional dangers. Instead of creating a vibrant innovation ecosystem in Europe, industrial policy could end up further entrenching the power of Big Tech, who already exercise a perhaps irreversible grip over the global AI ecosystem through control of capital, research and infrastructure. What is often misunderstood in Europe, is that concentration in the tech industry is <em>constitutive of </em>the AI market as we know it today. As a result, policymakers that are invested in developing a more competitive homegrown AI market, place industrial policy measures in concert with anti-monopoly, privacy and other policy goals.</p> <p>As public funds begin to pour in for AI industrial policy, European lawmakers must confront the elephant in the room: as it stands today, there is no AI without Big Tech. While European AI startups espouse aspirations to compete, they must contend with the reality that large US and Chinese-based tech companies control core AI infrastructure for both development and deployment: compute, data, talent, and most importantly – access to the consumer.</p> <p>In order to confront these infrastructural and ecosystem dependencies, we must start the crucial work of imagining an alternative digital future for Europe that includes an innovation paradigm outside of the incentive structures set by these companies. This must also stretch beyond the narrow imaginary of what counts as “public good” and “public interest” in current EU debates and include a more sophisticated understanding of the role that digital technology can play in innovation and economic growth more broadly. This will involve distancing from the current hype-cycle of chatGPT-inspired AI use cases, the continual push to build AI at ever larger scale (necessitating access to resources these firms control) and the geopolitical impulse towards the so-called <a href="https://ainowinstitute.org/publication/tracking-the-us-and-china-ai-arms-race">“AI arms race”</a>. </p> <p>If we don’t, efforts towards industrial policy on AI may eventually end up strengthening, rather than contesting, AI monopolies. And instead of empowering citizens, workers, and the environment, blanket adoption of AI could lead to waste, rights abuses, and single points of failure. We need only look to the Dutch <a href="https://www.politico.eu/article/dutch-scandal-serves-as-a-warning-for-europe-over-risks-of-using-algorithms/">child benefits scandal</a>, or more recent evidence about a dysfunctional <a href="https://dl.acm.org/doi/abs/10.1145/3630106.3658906">automation system used by Danish child protective services</a>, for examples of how AI adoption can go horribly wrong, automating austerity measures, disenfranchising communities of color and the poor, and leading to significant societal harm. </p> <p>Building on our previous work on <a href="https://ainowinstitute.org/ai-nationalisms">AI Nationalism</a>, <a href="https://ainowinstitute.org/series/computational-power-and-ai-2">Computational Power</a>, and <a href="https://ainowinstitute.org/publication/joint-submission-to-the-european-commissions-consultation-on-competition-and-generative-ai">Antitrust</a>, and in collaboration with a network of researchers and advocates, AI Now will be closely monitoring Europe’s nascent industrial policy on AI. Over the coming months/year we will interrogate the assumptions, central tensions, and trade-offs at the heart of Europe’s desire to become a major player in AI.</p> <p>Among other things, we will start by provoking the following questions: </p> <p>What would it take to realise a European vision for public interest AI? Given that current market structures heavily favor today’s tech giants, is a European vision for AI even feasible? </p> <p>Can Europe ever be competitive, or reach its goals on sustainability and climate change within the current paradigm of building ever larger models? </p> <p>What does public interest mean, when the AI Act failed to protect the rights of migrants and others who are most vulnerable? </p> <p>And given that so many benefits of AI remain speculative – should Europe even invest in large scale AI at all? </p> <p>With a network of collaborators and experts from across the region and beyond, we hope to start moving from diagnosis to an actionable agenda to harness the opportunity before us. </p> <p>How Europe wrestles with these questions is vitally important – not just for the continent. If a continent as wealthy and prosperous can’t truly compete or build <a href="https://www.google.com/url?q=https://openfuture.eu/our-work/public-digital-infrastructure/&sa=D&source=docs&ust=1719841861423640&usg=AOvVaw1DrR27bBh7bdqAhpKJMRhw">public digital infrastructure</a> and goods – this doesn’t bode well for regions that already find themselves at the global economic margins. </p> <p>We look forward to sharing more from this work as it moves forward, and welcome insights along the way.</p> <div class="w-50" id="footnote-popup"></div> </div> <div class="post-sidebar grid-col-12 grid-lg-col-4 w-100 w-xl-90"> <div class="sidebar d-flex flex-row flex-wrap mb-5"><div class="research-area sidebar-group d-flex flex-row align-items-center w-100 mb-2"><a class="d-flex flex-row align-items-center" href="https://ainowinstitute.org/research-areas/ai-industrial-policy"><img class="research-area-icon mr-2" src="https://ainowinstitute.org/wp-content/uploads/2023/03/us-china-bw.png" alt=""><h2 class="line-height-100 mb-0">AI Industrial Policy</h2></a></div><div class="sidebar-group d-flex flex-row flex-wrap"><p class="mono mr-1 mb-0">See all tagged: </p><h4 class="mr-1 mb-1"><a href="https://ainowinstitute.org/tag/artificial-intelligence">Artificial Intelligence</a></h4><h4 class="mr-1 mb-1"><a href="https://ainowinstitute.org/tag/concentration-of-power">Concentration of Power</a></h4><h4 class="mr-1 mb-1"><a href="https://ainowinstitute.org/tag/europe">Europe</a></h4><h4 class="mr-1 mb-1"><a href="https://ainowinstitute.org/tag/policy">policy</a></h4></div><hr class="sidebar"><button aria-label="Download" class="download-pdf" onclick="window.print()"><div class="d-flex align-items-center"> <svg width="15" height="22" viewBox="0 0 15 22" fill="none" xmlns="http://www.w3.org/2000/svg"> <path d="M4.20708 12.3673L4.20708 13.2923L4.20708 12.3673ZM1.9022 13.9692L2.64088 13.4124L1.9022 13.9692ZM6.90051 20.6007L7.63919 20.0439L6.90051 20.6007ZM7.63919 20.0439L2.64088 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d-inline-flex mono mb-0"><p class="mono mb-0"><a href="https://ainowinstitute.org/author/frederike">Frederike Kaltheuner</a></p></span> , <span class="addtl-authors d-inline-flex mono mb-0"><p class="mono mb-0"><a href="https://ainowinstitute.org/author/leevi">Leevi Saari</a></p></span> </span></div><hr class="sidebar"><div class="d-flex flex-row flex-wrap"><p class="mono mr-1 mb-0">Posted:</p><p class="mono mb-0">Jul 1, 2024</p></div></div> </div> </div> <div class="star-divider-footer grid-col-12 grid-lg-col-8 d-flex flex-row justify-content-center align-items-center my-2 my-lg-4 mr-lg-5"> <svg width="73" height="20" viewBox="0 0 73 20" fill="none" xmlns="http://www.w3.org/2000/svg"> <path fill-rule="evenodd" clip-rule="evenodd" d="M16.8038 3.98989C16.7565 3.90585 16.6493 3.87714 16.5662 3.92624L10.4853 7.52145C10.3705 7.58931 10.2255 7.50658 10.2255 7.37325V0.172169C10.2255 0.0770828 10.1484 0 10.0533 0H8.19356C8.09848 0 8.02139 0.0770828 8.02139 0.172169V7.44301C8.02139 7.57634 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