European Commission Announces AI Innovation Strategy and Creation of European AI Office

European Commission Announces AI Innovation Strategy and Creation of European AI Office

On January 24, 2024, the European Commission made a significant announcement regarding the future of artificial intelligence (AI) in the European Union. Following the political agreement reached in December 2023 on the EU AI Act, the Commission revealed its plans to implement a package of measures known as the AI Innovation Strategy to support AI startups and small and medium-size enterprises (SMEs) in the EU.

The AI Innovation Strategy aims to position the EU as a global frontrunner in trustworthy advanced AI models, systems, and applications. Key measures included in the strategy are the creation of AI Factories across the EU, the development of Common European Data Spaces to improve data availability for startups, the GenAI4EU initiative to support novel use cases in various sectors, and a significant investment package of around €4 billion through 2027 dedicated to generative AI.

In addition to the AI Innovation Strategy, the Commission also announced the establishment of the European AI Office, which is set to begin formal operations on February 21, 2024. The AI Office will serve as a centralized EU agency within the European Commission, supporting the implementation and enforcement of the AI Act in collaboration with national competent authorities.

The AI Office’s mandate includes ensuring the uniform implementation and enforcement of the AI Act, supporting the development of AI markets and policies across the EU, and coordinating collaboration initiatives within and outside the EU. Enforcement of the rules on general-purpose AI models is set to begin in May 2025, with codes of practice and consultation opportunities expected to follow.

These announcements highlight the EU’s commitment to investing in AI infrastructure and establishing a comprehensive regulatory framework for AI ahead of other jurisdictions. The AI Act is steadily progressing towards adoption, with the final step being formal adoption at the European Parliament’s plenary session in April 2024.

As the EU continues to advance its AI initiatives, businesses are encouraged to stay informed and seek guidance on how these developments may impact their operations. The Covington team, with expertise in European data-related and privacy regulations, is available to assist with any questions regarding the AI Act and upcoming EU legislation and initiatives.