The European Union’s planned regulation of artificial intelligence (AI) may bring about overly strict regulations and a substantial burden of compliance, hindering developments in the sector, Hungarian industry association IVSZ said on Wednesday. Noting the EU’s proposed AI legislation, in its final stages, designed to ensure safe and ethical development, IVSZ said that the digital transformation presented a “historic opportunity for the Hungarian economy to move away from the trap of mid-field development”, and AI would provide a serious competitiveness asset.
The market expects that compliance with the new regulations to cost up to 300,000 euros for companies in crucial sectors, which may prove an unbearable burden for SMEs, the statement said. IVSZ head Balázs Vinnai called for EU support for SMEs and startups in the sector.