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The European Union's new AI Act, set to be gradually implemented over the next two years, is poised to shake up the artificial intelligence industry. One of the most contentious provisions mandates that organisations using general-purpose AI models, like ChatGPT, must provide detailed summaries of the data used to train their systems.
The move is aimed at addressing concerns about how AI companies acquire and use data, including potential copyright infringements. However, AI companies are resistant to revealing this information, viewing it as a trade secret crucial to their competitive edge.
The specifics of how granular these transparency reports will be and their potential impact on both startups and tech giants like Google and Meta are still unclear. While some lawmakers advocate for complete transparency, others, like the French government, worry that strict regulations might stifle innovation and hinder the competitiveness of European AI companies.
The issue of data transparency has already led to several lawsuits against tech companies like Google, OpenAI, and Stability AI, with creators claiming their content was used without permission. While the EU's AI Act addresses the issue of transparency, it remains to be seen how it will balance the need for transparency with the protection of trade secrets.
