Chinese tech companies face increased EU compliance costs amid bloc's new AI rules
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Chinese tech companies are expected to face increased compliance costs in the European Union (EU) due to the implementation of the EU's new Artificial Intelligence Act on August 1. The Act aims to protect fundamental rights, democracy, and the environment from high-risk AI while promoting innovation. Chinese AI firms anticipate spending more time and money to comply with the new rules, potentially hindering innovation. Compliance and assessment requirements are projected to increase research and development (R&D) and testing costs for some companies by 20-40%. The EU's AI Act establishes obligations based on the potential risks and impact of the technology, including prohibited practices, high-risk systems, transparency obligations, governance, post-market monitoring, and market surveillance. Non-compliance can result in fines of up to €35 million or 7% of the offending firm's total worldwide annual turnover. The Act also focuses on the quality, relevance, and representativeness of training data. Chinese regulations, on the other hand, emphasize adherence to socialist values and avoiding content that could harm political and social stability. The EU's AI rules are seen as a blueprint for other governments, and some jurisdictions in Asia are considering similar regulations.

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https://finance.yahoo.com/news/chinese-tech-companies-face-increased-093000150.html