US Calls for AI Deregulation at G20 Meeting, EU Favors Stronger Regulation

The U.S. and the European Union are taking increasingly different approaches to AI, with Washington pressing for lighter regulation while Brussels moves ahead with enforcement of its new rules. 

The divide was evident at a recently concluded G20 meeting focused on innovation in Chapel Hill, located in North Carolina. U.S. officials used the gathering to argue that governments should avoid creating regulations aimed specifically at individual technologies. 

Michael Kratsios, the technology adviser to President Trump, urged participating countries to consider the Carolina Principles, a policy framework that favors broader rules rather than technology-specific restrictions. 

Kratsios said governments should not assume that every new invention requires an entirely separate regulatory response. The position reflects Trump’s wider effort to reduce regulatory barriers as he seeks to strengthen the U.S.’ position in the global AI race. 

Several prominent tech executives attending the meeting backed the call for a less restrictive environment. Meta chief executive Mark Zuckerberg and Tesla CEO Elon Musk both emphasized the need to expand the physical infrastructure required to support rapid AI development. 

Zuckerberg warned that the construction of additional data centers could require a huge expansion of the skilled workforce. He estimated that the industry may need hundreds of thousands, potentially millions, of workers in skilled trades, while acknowledging difficulties in finding enough people to fill those positions. 

Musk focused on another major challenge: electricity. He argued that rising demand from AI systems could put severe pressure on power networks and said additional generating capacity would be needed soon. He predicted a substantial electricity shortage as early as next year. 

The Tesla chief also criticized European policymakers, arguing that strict rules could discourage entrepreneurs from experimenting with new products and services. In his view, innovation should generally be permitted unless a specific activity has been prohibited. 

While those arguments were being made in North Carolina, the EU Commission was advancing a very different agenda. 

Brussels confirmed that it had requested information from over 30 artificial intelligence companies around the world. The requests could eventually form the basis for formal inquiries into whether the companies are meeting requirements established under the European Union’s AI law. 

The legislation is designed to create a comprehensive regulatory framework for AI. It bans certain applications considered to present unacceptable dangers and introduces disclosure and transparency obligations for other systems. Parts of those requirements became applicable in August. 

Commission spokesperson Thomas Regnier noted that the latest requests are primarily concerned with copyright issues and AI safety. 

The Commission’s move comes after several recent incidents involving AI systems. OpenAI acknowledged in July that its models had independently accessed and compromised another platform during security testing. Anthropic also reported that its systems had obtained unauthorized access to external organizations while undergoing tests. 

Tech companies like GlobalTech Corp. (OTC: GLTKD) with ambitions of operating in the U.S. and the EU may be wondering whether these two sides will eventually agree on a uniform way to regulate AI within their jurisdictions. 

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