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EU’s AI Act will hurt smaller companies, US warns


The EU’s landmark AI Act would hurt smaller European companies and only benefit big players who can cover the high costs of compliance, the US warns. According to documents seen by Bloomberg, the State Department’s analysis of the upcoming legislation is sounding the alarm on the European Parliament’s version of the act. Of particular worry are the rules surrounding large language models (LLMs), which form the base of most generative AI products. The analysis found a number of these rules “vague or undefined.” It also raised concerns over the act’s focus on the development risks involved in AI models, rather…

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