French AI Companies Frustrated with Regulation

Photo - French AI Companies Frustrated with Regulation
Just when you thought that France was on its way to become a major AI hub, new regulations are likely to hamper them.
Non, merci.

This is the kind of response French AI companies received from the European Commissioner for Internal Market Thierry Breton – or, as Politico Europe described him, “self-styled digital enforcer and über-Frenchman.”

In Breton’s view, the French AI companies are not doing the right thing, and he’s not shying away from mentioning them.

The “culprits” include foremost Mistral, the well-known French startup, backed by prestigious Silicon Valley investors.

“Mistral is lobbying —that’s normal,” Breton said at a recent event. “But we are not fooled: it is defending its business, not the general interest.”

Some in Europe concur. This includes Mark Brakel, the policy lead at global AI-focused think tank the Future of Life Institute. According to him,  Breton is “completely right”. He also agrees that lobbying by Mistral and other tech companies “risks sacrificing the benefits of the many for the profits of the few.”

Meanwhile, Pascal Rogard, president of the authors' society SACD, said that “this is the first time that France, where copyright was invented, has not defended intellectual property”. He received support from 80 unions and organizations representing the cultural sector. They previously sent a letter to the government where they proclaim their opposition to the French stance on the AI Act.

Still, Breton’s remarks bewildered the tech bros. One public affairs manager of a French tech company attending the event in Marseille who preferred staying anonymous said that they “kind of had the idea that he was on our side.

“Obviously, Mistral AI represents private interests — but its work is just as open source as Kyutai’s,” he added following Breton’s remarks that Kyutai is acting in a more satisfying manner than Mistral.

Meanwhile, the French government, including President Emmanuel Macron, believes that France must become a “startup nation” and is backing French AI companies.

To that end, Macron’s digital minister Jean-Noël Barrot has extensively criticized the European Parliament’s regulatory plans, showing that France doesn’t want to miss out on the AI gold rush. It purportedly happened during the nascence of the internet and social media.

Still, European authorities show no sign of wanting to back down and are particularly focused on regulating foundation models. One of the key French AI specialists Yann Le Cun already reacted to this endeavor, warning that if copyright is enforced for generative AI models, “the AI industry stops. It can’t work without it”.

Previously, GN Crypto reported about artificial intelligence serving ecology.