Is Europe strengthening itself through clear positioning? Or is it marginalising itself because regulation makes innovation more difficult? This is the axis of tension along which a groundbreaking EU legislative proposal is being discussed: the AI Act. It is intended to regulate how artificial intelligence may be used - for example in the area of surveillance, medical diagnostics or in weapons systems. It would be the first law of its kind in the world.

Hendrik Remigereau is Head of the Merantix AI Campus in Berlin. Merantix has been investing in start-ups that drive the development of artificial intelligence since 2016. He sees regulation as necessary to prevent a "Wild West". At the same time, he warns against blanket restrictions and an overly strong focus on risks: "We should also talk about possibilities and opportunities". This creates entrepreneurial spirit - and that is what is needed for the future of Europe.

Europe overslept the social media boom. The power is now in the hands of US super corporations. When it comes to artificial intelligence, it must not come to that. The continent must wake up, become more agile and entrepreneurial so that start-ups do not migrate. Otherwise there is a risk of further technological dependency. European expertise is being commercialised elsewhere, in other value chains.

So how can the balancing act between regulation and innovation be achieved? For Remigereau, sensitive regulation means focussing on high-risk areas: Applications in the healthcare sector, transport or security. The users should be responsible, not the developers. Accordingly, regulation should only take place when the effect of an application is foreseeable. And then, if possible, in a way that complements existing laws. Done properly, regulation is not a disadvantage: "The most important thing for a company is regulatory clarity. This also strengthens confidence in AI tools."

Start-ups also need to be strengthened. "We have a lot of researchers, but there is a lack of transfer to entrepreneurship," criticises Remigereau. European companies are hesitant when it comes to financing ideas. As a result, young minds are migrating to the USA, where companies see opportunities rather than risk. "We need more capital for ideas in the growth phase and strong ecosystems that give start-ups access to industries." This also benefits established companies that can support innovations outside their bubble from the outset.

This is also important in the larger context. Traditional European companies mainly developed hardware such as cars, but now software is in demand. You have to get out of your own skin, Remigereau emphasises. "Companies need to open up to other networks and enter into partnerships instead of building their own silos."

But can Europe even compete with players like OpenAI? Yes, says Remigereau. The turbulence surrounding CEO Sam Altman has shown that OpenAI is currently not a stable company. At the same time, European companies are already working on their own foundation models, which serve as powerful starting points for artificial intelligence applications.

It is still hard to predict how AI will change our society. Many companies are examining the extent to which they can incorporate artificial intelligence into their processes. Remigereau advises them to keep an eye on regulatory steps taken by legislators. Regulation will come - and it is necessary to ensure that the transformation brought about by AI does not turn into a disaster.

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