• The three EU nations advocate for mandatory self-regulation through codes of conduct for AI foundation models, which are designed to generate a wide range of outputs.
• They oppose the imposition of sanctions for non-compliance, suggesting a system of sanctions only after a grace period and upon identifying violations.
• Secondly, they highlight that AI regulation must target specific applications rather than the nature of emergent AI technologies because doing otherwise will stifle future AI developments.

EU Governments Propose Binding Voluntary Commitments for AI Providers: Germany, France, and Italy have proposed a framework for AI regulation that emphasizes binding voluntary commitments for both large and small AI providers across the European Union. This approach aims to strike a balance between fostering innovation and ensuring responsible AI development.

Avoiding Competitive Disadvantage for Smaller EU AI Providers: The three EU governments have expressed concerns about the European Parliament's initial proposal to limit the code of conduct to major AI providers, primarily from the US. They argue that this could create an unfair competitive advantage for smaller European providers, potentially diminishing trust in their security and affecting their customer base.

The proposed regulatory framework includes:

Mandatory self-regulation through codes of conduct for AI foundation models.

Rules of conduct and transparency that are binding for all AI providers.

Initial grace period without sanctions, followed by a potential system of sanctions for non-compliance.

Establishment of a European authority to monitor compliance with standards.

German Government's Stance on AI Regulation: Germany's Economy Ministry, responsible for AI policy, emphasizes that laws and state control should not regulate AI itself but rather its application. They also advocate for a focus on regulating AI applications that are already in use or have reached the market.

Upcoming Discussions on AI Regulation:

A digital summit organized by the German government is planned in Jena, Thuringia, for November 20 – 21, with participants being politicians, businessmen, scientists, and others dealing with artificial intelligence. Additionally, the German and Italian governments will hold talks in Berlin on November 22 to further address AI regulation.