EU AI Act: EU’s top competitiveness adviser urges a pause

The key points:  Mario Draghi has publicly called for a pause in the full implementation of the EU’s AI Act, urging policymakers to assess potential drawbacks and ensure upcoming rules are proportionate and support innovation. Speaking on Tuesday last (Sept 16) Draghi highlighted uncertainty around the AI Act, noting that while initial “unacceptable risk” bans and voluntary codes have worked smoothly, the next stage risks stifling innovation unless more understanding of impacts is gained.

Why this matters: Draghi’s remarks are significant given his role as a special adviser to the European Commission and his work on EU competitiveness. A former Italian prime minister and EU Central Bank President, Dragi was the author of the 2024 landmark “Draghi Report” on European competitiveness and continues to help shape EU policy discussions. 

Wider context: His intervention this week reflects industry wide concerns and echo calls for a delay to allow for practical implementation and simplification of the rules. In his remarks, Draghi noted that there is still confusion in member states about enforcement authorities and guidance for general purpose AI, such as ChatGPT. He has urged the EU to act more like a federation, concentrate resources, and consider joint debt issuance for common projects in areas like technology and defence.