### 68. denounces in the strongest terms the alleged attempts by qatar to influence members , former members and staff of the european parliament through acts of corruption , which constitute serious foreign interference in the eu’s democratic processes; underlines the need to step up efforts aimed at combating corruption and influence campaigns; reiterates its call for updated transparency rules , mapping foreign funding for eu-related lobbying , including funding for non-profit organisations and proper regulation and monitoring of friendship groups; ### deleted


### 14. underlines the need for public administrations , at all levels , to have specific training aimed at identifying and countering act of information manipulation and interference; reiterates the call on euibas and on national authorities , to continue and strengthen similar training and situational awareness actions as hybrid threats are persistent and widespread and increasingly aimed at influencing eu policies and legislation; calls on euibas to set up interinstitutional training to promote the overall resilience of euibas as a whole; ### 14. underlines the need for public administrations , at all levels , to have specific training aimed at identifying and countering act of information manipulation and interference; reiterates the call on euibas and on national authorities , to continue and strengthen similar training and current situational awareness actions as hybrid threats are persistent and widespread and increasingly aimed at influencing eu policies and legislation; calls on euibas to set up interinstitutional training to promote the overall resilience of euibas as a whole;


### 1. stresses that all the conditions necessary to guarantee animal welfare during transport must be ensured at all times , regardless of their species , age , physical condition or the means and length of the journey; ### 1. stresses that all the conditions necessary to guarantee animal welfare during transport must be ensured at all times , regardless of their species , age , physical condition or the means and length of the journey; notes that farmers have an overriding interest to ensure that animals arrive at their destination in the best possible condition;


### 2. agrees with the court of auditors that the eu3 has some of the world’s highest animal welfare standards , but insists that these only become effective if they are fully enforced; considers that the eu needs to step up its efforts to ensure that animal welfare during transport is fully respected everywhere , at all times , and by every party concerned , from the origin until the final destination; ### 2. agrees with the court of auditors that the eu3 has some of the world’s highest animal welfare standards , but insists that these only become effective if they are fully enforced; considers that the eu needs to step up its efforts to ensure that animal welfare during transport is fully respected everywhere , at all times , and by every party concerned , from the origin until the final destination; stresses that individual isolated examples of malpractice do not represent general standards of the industry as a whole;


### 2. agrees with the court of auditors that the eu3 has some of the world’s highest animal welfare standards , but insists that these only become effective if they are fully enforced; considers that the eu needs to step up its efforts to ensure that animal welfare during transport is fully respected everywhere , at all times , and by every party concerned , from the origin until the final destination; ### 2. agrees with the court of auditors that the eu3 has some of the world’s highest animal welfare standards , but notice that recently some countries/regions went further by banning any live export and the transport of specific animal categories;


### 26. considers that equipping the means of transport with a cctv system , with a particular focus on the loading and unloading operations , should be promoted for the sake of animal welfare protection and in order to safeguard operators who comply with the rules; stresses that data protection and privacy rights must be ensured by the competent authorities throughout the entire process; ### 26. considers that equipping the means of transport with a cctv system , for long haul journeys , with a particular focus on the loading and unloading operations , should be promoted for the sake of animal welfare protection and in order to safeguard operators who comply with the rules; stresses that data protection and privacy rights must be ensured by the competent authorities throughout the entire process; considers that carriers shall keep the videos recorded for a certain period and have them available to the competent authorities at their request;


### 27. draws attention to the fact that , under the current framework , the certificate of competence for the drivers and attendants of the means of transport can be valid for life , without any mandatory requirement set at european level for refresher courses and skills updates; ### 27. draws attention to the fact that , under the current framework , the certificate of competence for the drivers and attendants of the means of transport in some member states can be valid for life , without any mandatory requirement set at european level for refresher courses and skills updates;


### 29. recalls that the official controls regulation (eu) no 2017/625 will replace , as of 15 december 2022 , several provisions of regulation (ec) no 1/2005 , namely on checks on long journeys , training of the competent authorities’ staff , checks at exit points , emergency measures in the case of non-compliance , mutual assistance and exchange of information , infringements and on-the-spot checks by the commission; ### 29. recalls that the official controls regulation (eu) no 2017/625 will replace , as of 15 december 2022 , several provisions of regulation (ec) no 1/2005 , namely on checks on long journeys , training of the competent authorities’ staff , checks at exit points , emergency measures in the case of non-compliance , mutual assistance and exchange of information , infringements and on-the-spot checks by the commission; emphasises the need for frequent and thorough inspections;


### 30. recalls that according to the court of auditors report from 2018 , most of the national authorities did not use the information available in the trade control and expert system (traces) to target their inspections and/or audits , in part due to existing user access restrictions; recognises that a better use of the traces system for the performance of retrospective checks should be ensured; ### 30. recalls that according to the court of auditors report from 2018 , most of the national authorities did not use the information available in the trade control and expert system (traces) to target their inspections and/or audits , in part due to existing user access restrictions; recognises that a better use of the traces system for the performance of retrospective checks should be ensured; stresses the importance of training operators to use the traces system;


### 32. notes that further improvements to data collection systems and to traces can be made in the current legislative framework , to help harmonise procedures between member states’ competent authorities; ### 32. notes that further improvements to data collection systems and to traces can and should be made in the current legislative framework , to help harmonise procedures between member states’ competent authorities;


### 3. is of the opinion that , while a global overhaul of the rules applicable to the budget is not needed at this time , the financial regulation must be subject to targeted improvements and simplifications , in particular where they increase transparency and democratic scrutiny; ### 3. is of the opinion that , while a global overhaul of the rules applicable to the budget is not needed at this time , the financial regulation must be subject to targeted improvements and simplifications , in particular where they increase transparency and democratic scrutiny; furthermore , the revision should address challenges related to smes' participation in the mff 2022-2027 package;


### 5. is concerned that these mechanisms pose a serious challenge to the ability of the parliament to fulfil its decision-making , scrutiny and discharge functions; strongly believes that eu financial rules must be updated as regards the role of the budgetary authority in relation to these mechanisms , in order to bring them closer to the principles and responsibilities set out in the treaties; ### 5. is concerned that these mechanisms pose a serious challenge to the ability of the parliament to fulfil its decision-making , scrutiny and discharge functions; and more generally to the ability of the general public and any public or private institution to understand the union budget and hold the commission to account; strongly believes that eu financial rules must be updated as regards the role of the budgetary authority and the budget structure in relation to these mechanisms , in order to bring them closer to the principles and responsibilities set out in the treaties;


### 6. believes that parliament , as one arm of the budgetary authority , should be able to scrutinise and authorise as appropriate the commission’s plans with respect to the management of external assigned revenue and of its borrowing and lending operations; suggests that relevant articles of the financial regulation , including articles 7 , 46 and 56 , be revised to clarify that assets and liabilities linked to borrowing and lending operations are included in the eu budget; ### 6. believes that parliament , as one arm of the budgetary authority , should be able to scrutinise and authorise as appropriate the commission’s plans with respect to the management of external assigned revenue and of its borrowing and lending operations; suggests that relevant articles of the financial regulation , including articles 7 , 46 and 56 , be revised to clarify that assets and liabilities linked to borrowing and lending operations are included in the eu budget; moreover the budget authorities should be informed about all situations when funds from off-budget instruments are not paid out due to allegations of misuse , corruption , fraud or breaches of rule of law and when member states do not have sufficient anti-fraud systems in place;


### 6. believes that parliament , as one arm of the budgetary authority , should be able to scrutinise and authorise as appropriate the commission’s plans with respect to the management of external assigned revenue and of its borrowing and lending operations; suggests that relevant articles of the financial regulation , including articles 7 , 46 and 56 , be revised to clarify that assets and liabilities linked to borrowing and lending operations are included in the eu budget; ### 6. believes that parliament , as one arm of the budgetary authority , should be able to scrutinise and authorise as appropriate the commission’s use and management of external assigned revenue and of its borrowing and lending operations; suggests that relevant articles of the financial regulation , including articles 7 , 46 and 56 , be revised and complemented to clarify that external assigned revenue , assets and liabilities linked to borrowing and lending operations are included in the eu budget;


### 7. believes that external assigned revenue pursuant to article 21 of the financial regulation , and assets and liabilities deriving from off-budget operations , including borrowing on capital markets , should be allocated to the relevant budget lines in line with article 8 of the financial regulation and classified in accordance with the budget nomenclature; suggests that they should form an integral part of the eu budget and be adopted by the budgetary authority as part of that budget; ### 7. believes that external assigned revenue pursuant to current article 21 of the financial regulation , and assets and liabilities deriving from off-budget operations , including borrowing on capital markets , should be allocated to the relevant budget lines , classified in accordance with the budget nomenclature and consolidated in respective parts ii and iii of the union budget; considers that they should form an integral part of the eu budget and be adopted by the budgetary authority as part of that budget;


### 8. calls for the revision of reporting requirements on the commission’s debt management strategy , including maturity and schedule of payments , to adapt them to the increased complexity and risk of borrowing and lending operations; ### 8. calls for the revision of reporting requirements on the commission’s debt management strategy , including maturity and schedule of payments , to adapt them to the increased complexity and risk for the eu budget of borrowing and lending operations;


### 10. stresses that it is important to know who benefits from eu funds in order to protect the financial interests of the eu and to detect fraud , corruption and conflicts of interest in particular; notes that data for identifying economic operators and their beneficial owners is not easily , or not at all , accessible12 ; considers that the centralisation of the information in a single , interoperable eu database with information on direct and ultimate beneficiaries would overcome the identified fragmentation and lack of transparency; ### 10. stresses that it is important to know who benefits from eu funds in order to protect the financial interests of the eu and to detect fraud , corruption and conflicts of interest in particular; notes that a study commissioned by the cont committee on the 50 largest beneficiaries of eu funds revealed that data for identifying economic operators and their beneficial owners is not easily , or not at all , accessible12 ; considers that the centralisation of the information in a single , interoperable eu database with information on direct and ultimate beneficiaries would overcome the identified fragmentation and lack of transparency;


### 10. stresses that it is important to know who benefits from eu funds in order to protect the financial interests of the eu and to detect fraud , corruption and conflicts of interest in particular; notes that data for identifying economic operators and their beneficial owners is not easily , or not at all , accessible12; considers that the centralisation of the information in a single , interoperable eu database with information on direct and ultimate beneficiaries would overcome the identified fragmentation and lack of transparency; ### 10. stresses that it is important to know who benefits from eu funds in order to protect the financial interests of the eu and to detect fraud , corruption and conflicts of interest in particular; notes that data for identifying economic operators and their beneficial owners is not easily , or not at all , accessible12 ; considers that requiring the centralisation of the information in a single , interoperable eu database with information on direct and ultimate beneficiaries would overcome the identified fragmentation and lack of transparency;


### 11. emphasises that the financial regulation should include provisions that require the responsible actors to gather and keep uniform records of economic operators and beneficial owners in order to allow identification across eu programmes , regardless of who implements these programmes and of management mode; considers that these requirements should be balanced to reflect strictly relevant information items; underlines that data may only be published in line with data protection requirements and the standing jurisprudence of the court of justice of the european union; considers that compulsory information items collected for audit and control purposes need to include as a minimum the registration number of legal entities , national identification number for natural persons , an indication of the type of beneficiary , sub-contractors , beneficial owners , whether the beneficiary also receives state aid and contact information; underlines that the system needs to facilitate the aggregation of individual amounts concerning the same direct or ultimate beneficiary; considers that publicly accessible systems should facilitate both individual searches through a web-based tool and systemic analysis through bulk downloads; ### 11. emphasises that the financial regulation should include provisions that require the responsible actors to gather and keep uniform records of economic operators and beneficial owners in order to allow identification across eu programmes , regardless of who implements these programmes and of management mode; emphasises the need to remove any technical and legal barriers to the collection of data on company structures and beneficial ownership and establish measures to ensure a digital and interoperable , standardised collection of information on the recipients of union funding , including on those ultimately benefitting , directly or indirectly , from union funding and their beneficial owners; acknowledges that the edps sees no general data protection issues on establishing such interoperability , but the necessity for a clear legal basis; considers that compulsory information items collected for audit and control purposes need to include as a minimum the registration number of legal entities , national identification number for natural persons , an indication of the type of beneficiary , sub-contractors , beneficial owners , whether the beneficiary also receives state aid and contact information; underlines that the system needs to facilitate the aggregation of individual amounts concerning the same direct or ultimate beneficiary; considers that publicly accessible systems should facilitate both individual searches through a web-based tool and systemic analysis through bulk downloads; urges member states and the commission to guarantee an increased interoperability of the existing , european and national , databases and data-mining tools;


### 11. emphasises that the financial regulation should include provisions that require the responsible actors to gather and keep uniform records of economic operators and beneficial owners in order to allow identification across eu programmes , regardless of who implements these programmes and of management mode; considers that these requirements should be balanced to reflect strictly relevant information items; underlines that data may only be published in line with data protection requirements and the standing jurisprudence of the court of justice of the european union; considers that compulsory information items collected for audit and control purposes need to include as a minimum the registration number of legal entities , national identification number for natural persons , an indication of the type of beneficiary , sub-contractors , beneficial owners , whether the beneficiary also receives state aid and contact information; underlines that the system needs to facilitate the aggregation of individual amounts concerning the same direct or ultimate beneficiary; considers that publicly accessible systems should facilitate both individual searches through a web-based tool and systemic analysis through bulk downloads; ### 11. emphasises that the financial regulation should include provisions that require the responsible actors to gather and keep uniform records of economic operators and beneficial owners in order to allow identification across eu programmes , regardless of who implements these programmes and of management mode (direct , indirect or shared management); considers that these requirements should be balanced to reflect strictly relevant information items; underlines that data may only be published in line with data protection requirements and the standing jurisprudence of the court of justice of the european union; considers that compulsory information items collected for audit and control purposes need to include as a minimum the registration number of legal entities , national identification number for natural persons , an indication of the type of beneficiary , sub-contractors , beneficial owners , whether the beneficiary also receives state aid and contact information; underlines that the system needs to facilitate the aggregation of individual amounts concerning the same direct or ultimate beneficiary; considers that publicly accessible systems should facilitate both individual searches through a web-based tool and systemic analysis through bulk downloads;


### 12. considers that article 63 of the financial regulation should be modified to include arachne as a compulsory risk scoring tool made available by the commission to member states and other implementing partners; considers that the financial regulation should also indicate which indicators arachne uses to determine the risk score of economic operators; considers that any additional administrative burden , from inserting information multiple times in various it systems , including arachne , must be avoided; ### 12. considers that article 63 of the financial regulation should be modified to include arachne as a compulsory risk scoring tool made available by the commission to member states and other implementing partners; considers that the financial regulation should also provide indicators , which arachne uses to determine the risk score of economic operators; stresses the need of harmonizing such basic indicators with the exclusions grounds of the early detection and exclusion system (edes); considers that arachne should be made simpler and more user-friendly in terms of risk indicators , for example through visualisations; considers that any additional administrative burden , from inserting information multiple times in various it systems , including arachne , must be avoided;


### 13. calls for the use of the early detection and exclusion system (edes) to be made compulsory under shared management; further notes that edes does not distinguish between subsidiaries of larger corporations; calls on the commission to make this distinction and to specify in the rules for early detection and for exclusion which entity of a multi-national or multi-company corporation is registered for early detection or exclusion; ### 13. notes that the early detection and exclusion system (edes) is currently only used under direct and indirect management; considers that economic operators that are considered a risk for the eu financial interest under direct and indirect management should also be considered a risk under shared management and vice versa; calls therefore for the use of edes to be made compulsory under shared management; further notes that edes does not distinguish between subsidiaries of larger corporations; calls on the commission to make this distinction and to specify in the rules for early detection and for exclusion which entity of a multi-national or multi-company corporation is registered for early detection or exclusion;


### 13. calls for the use of the early detection and exclusion system (edes) to be made compulsory under shared management; further notes that edes does not distinguish between subsidiaries of larger corporations; calls on the commission to make this distinction and to specify in the rules for early detection and for exclusion which entity of a multi-national or multi-company corporation is registered for early detection or exclusion; ### 13. calls for the use of the early detection and exclusion system (edes) to be made compulsory under shared management; further notes that edes does not distinguish between subsidiaries of larger corporations; calls on the commission to make this distinction and to specify in the rules for early detection and for exclusion which entity of a multi-national or multi-company corporation is registered for early detection or exclusion; is of the opinion that the early detection and exclusion system (edes) could help the union institutions and national bodies to better fight and prevent corruption and fraud in the member states; regrets that the database lists relatively few economic operators; views this as a sign that edes is not properly implemented;


### 15. suggests that the re-use of decommitted appropriations as a result of full or partial non-implementation of projects pursuant to article 15(3) of the financial regulation should be extended beyond research and innovation , to include appropriations that support social policies , youth and humanitarian aid; believes that decommitted appropriations should be made available in their entirety the year following that of their decommitment; ### 15. asks the commission to analyse the possibility of extending the re-use of decommitted appropriations as a result of full or partial non-implementation of projects pursuant to article 15(3) of the financial regulation beyond research and innovation; expresses its concern about the potential breach of the annuality principle; believes that decommitted appropriations should be made available as decided by the two budgetary authorities;


### 16. suggests that the financial regulation be revised to guarantee the appropriate role of parliament in the setting up and scrutiny of any new trust fund , including in the drawing up of the constitutive agreement and the mobilisation of the union’s contribution , the implementation , continuation and possible liquidation; ### 16. suggests that the financial regulation be revised to guarantee the appropriate role of parliament in the setting up and scrutiny of any new trust fund , including in the drawing up of the constitutive agreement and the mobilisation of the union’s contribution , the implementation , continuation and possible liquidation; reminds that the extensive use of trust funds undermines the principle of unity of the eu budget;


### 17. notes that the commission’s vademecum on public procurement was last updated in january 2020; notes that the current definition of ‘professional conflict of interest’ is limited to a conflicting interest that affects the capacity of an economic operator to perform a contract; calls on the commission to provide for a more explicit definition and to ensure that its implementation rules on public procurement do not permit the awarding of policy-related service contracts to undertakings that are under the economic control of a parent company or a group that owns shares related to activities that are not in line with the eu’s environmental , social and green deal objectives; ### 17. notes that the commission’s vademecum on public procurement was last updated in january 2020; notes that the current definition of ‘professional conflict of interest’ is limited to a conflicting interest that affects the capacity of an economic operator to perform a contract; calls on the commission to provide for a more explicit definition and to ensure that its implementation rules on public procurement do not permit the awarding of policy-related service contracts to undertakings that are under the economic control of a parent company or a group that owns shares related to activities that are not in line with the eu’s environmental , social and green deal objectives; notes that that the financial regulation should take into account the autonomous strategic interest of the eu including the necessity to have fair competition and a level-playing field among bidders , and also to foster eu jobs in a range of industries that are key to achieve europe’s future policy objectives;


### 18. notes the guidance provided by the commission on using the public procurement framework in the emergency situation related to the covid-19 crisis; encourages the commission to gather and evaluate the experience of contracting authorities with the public procurement framework in this regard and to reflect the lessons learned in the financial regulation , by identifying criteria for defining exceptional/unusual circumstances in which temporary/framed/necessary flexibility in the implementation of public procurement rules can be applied; ### 18. notes the guidance provided by the commission on using the public procurement framework in the emergency situation related to the covid-19 crisis; encourages the commission to gather and evaluate the experience of contracting authorities with the public procurement framework in this regard , especially its effect on smes , and to reflect the lessons learned in the financial regulation , by identifying criteria for defining exceptional/unusual circumstances in which temporary/framed/necessary flexibility in the implementation of public procurement rules can be applied;


### 21. notes that management and control systems of member states’ authorities are regularly assessed by the commission in accordance with the sector-specific rules; considers that shortcomings found in one member state are not automatically applicable to other member states and that corrective measures , in adjustments either to the legal requirements or to the implementation guidelines , should be proportionate and tailored to the member state where these findings are applicable; ### 21. notes that management and control systems of member states’ authorities are regularly assessed by the commission in accordance with the sector-specific rules; considers that shortcomings found in one member state are not automatically applicable to other member states and that corrective measures , in adjustments either to the legal requirements or to the implementation guidelines , should be proportionate and tailored to the member state where these findings are applicable; and that the results of the assessments carried out by the commission should be made public;


### 22. considers that eu assessments should strictly adhere to eu standards; considers that where stricter national standards exist , the use of these must not be to the detriment of the beneficiary; considers that article 126 of the financial regulation on cross-reliance on assessments should be changed to reflect this principle; ### 22. considers that eu assessments should strictly adhere to eu standards , including their being carried out transparently; considers that where stricter national standards exist , the use of these must not be to the detriment of the beneficiary; considers that article 126 of the financial regulation on cross-reliance on assessments must obligatorily be changed to reflect this principle;


### 1. notes that the world stands on the verge of the fourth industrial revolution; points out that in comparison with the three previous waves , initiated by the introduction of steam , electricity , and then computers , the fourth wave draws its energy from an abundance of data combined with powerful algorithms; stresses that today’s digital revolution is shaped by its unprecedented scale , fast convergence , and the enormous impact of emerging technological breakthroughs on states , economies and societies; ### 1. notes that the world stands on the verge of the fourth industrial revolution; points out that in comparison with the three previous waves , initiated by the introduction of steam , electricity , and then computers , the fourth wave draws its energy from an abundance of data combined with powerful algorithms and computing capacity; stresses that today’s digital revolution is shaped by its unprecedented global scale , extremely fast convergence , and the enormous impact of emerging technological breakthroughs on states , economies and societies;


### 2. observes that the digital revolution has , at the same time , triggered a global tech race , in which digital sovereignty is seen as a prerequisite for great-power status in both political and economic terms; stresses the growing realisation among decision makers that emerging technologies could lead to a global power shift away from the western world; ### 2. observes that the digital revolution has , at the same time , triggered a global tech race , in which digital sovereignty is seen as a prerequisite for greater power status in both political and economic terms; stresses the growing realisation among decision makers that emerging technologies could lead to a global power shift away from the western world;


### 3. points out that europe , which for centuries set international standards , dominated technological progress and led in high-end manufacturing and deployment , has therefore fallen behind in a new ‘winner-takes-most’ or ‘superstar’ economy; underlines the risk of european values being globally replaced , our companies becoming marginalised and our living standards being drastically reduced; ### 3. points out that europe , which for centuries set international standards , dominated technological progress and led in high-end manufacturing and deployment , has therefore fallen behind in the context of a new ‘winner-takes-most’ or ‘superstar’ economy; underlines the risk of european universal values defended by the eu being globally replaced , our companies becoming marginalised and our living standards being drastically reduced;


### 4. highlights , firstly , that digital tools are increasingly becoming an instrument of manipulation in the hands of authoritarian states and their proxies , used to trigger a clash between political systems; explains that digital espionage , low-scale warfare and disinformation campaigns are deployed in order to pose an existential threat to our democratic societies and question the european way of life; ### 4. highlights , firstly , that digital tools are increasingly becoming an instrument of manipulation in the hands of authoritarian states and their proxies , used to trigger a clash between political systems; explains that digital espionage , sabotage , low-scale warfare and disinformation campaigns are deployed in order to pose an existential threat to our democratic societies and question the european way of life;


### 6. warns that as a result of these and other existential threats to our democracy and prosperity , the global tech race has become a fight for survival for the eu; stresses that if the eu does not act swiftly and courageously , it will end up becoming a digital colony of china , the us and other states and risk losing its political stability , social security and individual liberties; ### 6. warns that as a result of these and other existential threats to our democracy and prosperity , the global tech race has become a fight for survival for the eu; stresses that if the eu does not act swiftly and courageously , it will end up at the mercy of china , the us and other states and risk losing its political stability , social security , economic foundation and individual liberties;


### 7. argues that artificial intelligence (ai) is the key emerging technology within the fourth industrial revolution; notes that ai is the control centre of the new data layer that surrounds us and which can be thought of as the fifth element after air , earth , water and fire; states that by 2030 , ai is expected to contribute more than eur 11 billion to the global economy , an amount that almost matches china’s gdp in 2020; ### 7. argues that artificial intelligence (ai) is the key emerging technology within the fourth industrial revolution; notes that ai is the control centre of the new data layer that surrounds us and which can be thought of as the fifth element after air , earth , water and fire; states that by 2030 , ai is expected to contribute more than eur 11 trillion to the global economy , an amount that almost matches china’s gdp in 2020;


### 7. argues that artificial intelligence (ai) is the key emerging technology within the fourth industrial revolution; notes that ai is the control centre of the new data layer that surrounds us and which can be thought of as the fifth element after air , earth , water and fire; states that by 2030 , ai is expected to contribute more than eur 11 billion to the global economy , an amount that almost matches china’s gdp in 2020; ### 7. argues that artificial intelligence (ai) is one of the key emerging technologies within the fourth industrial revolution; notes that ai is the control centre of the digital domain , which is central for the functioning of the modern world; states that by 2030 , ai is expected to contribute more than eur 11 trillion to the global economy , an amount that almost matches china’s gdp in 2020;


### 8. explains that there is therefore a race for ai leadership within the global tech race; points out that the countries that master ai will gain key advantages; highlights , however , that ai is not a technology with magical powers but rather an efficient tool that we can put to good use; states that the rise of ai likewise does not require us to completely rewrite our laws to counter new kind of threats or to prevent intelligent machines from taking over; believes that although ai is indeed reshaping the world as we know it , the reality is much less dramatic and most developments in the field of ai are positive; ### 8. explains that there is therefore a race for ai leadership within the global tech race; points out that the countries that master ai will gain key advantages; highlights , however , that ai is not a technology with magical powers but rather an efficient set of tools and techniques that we can put to good use; states that the rise of ai likewise does not require us to completely rewrite our laws to counter new kind of threats or to prevent intelligent machines from taking over; believes that although ai is indeed reshaping the world as we know it , the reality is much less dramatic and most developments in the field of ai have great potential in terms of competitiveness of our economies and wellbeing of individuals;


### 2. potential opportunities , risks and obstacles in the use of ai: six case studies examined by the aida committee ### 2. potential opportunities , risks and obstacles in the use of ai: seven case studies examined by the aida committee


### 9. explains that ai is actually an umbrella term that covers a wide range of old and new technologies that often have little more in common than being guided by a given set of human-defined objectives and having some degree of autonomy in their actions; notes that while some of these technologies are already in widespread use , others are still under development or are even just speculative concepts that may or may not exist in the future; ### 9. explains that ai is actually an umbrella term that covers a wide range of old and new technologies that often have little more in common than being guided by a given set of human-defined objectives , engaging in decision making or prediction based on available data , and having some degree of autonomy in their actions; notes that while some of these technologies are already in widespread use , others are still under development or are even just speculative concepts that may or may not exist in the future;


### 11. notes that in the second wave , the automated learning processes of algorithms based on the processing of large amounts of high-quality data , the ability to bring together inputs from multiple radars , lidars and cameras to form a single image of the environment , and the identification of patterns made ai systems more complex , autonomous and opaque; stresses that current ai can therefore be broken down into many different sub-domains and techniques , whereby deep learning is for instance a subfield of machine learning , which itself is a subfield of ai; ### 11. notes that in the second wave , the automated learning processes of algorithms based on the processing of large amounts of high-quality data , the ability to bring together inputs from different sources to form a single image of a given environment , and the identification of patterns made ai systems more complex , autonomous and opaque; stresses that current ai can therefore be broken down into many different sub-domains and techniques , whereby deep learning is for instance a subfield of machine learning , which itself is a subfield of ai;


### 13. highlights that many fears linked to ai are based on hypothetical concepts such as general ai , artificial superintelligence and singularity which could , in theory , lead to a power shift from humans to ai and create machines that could even break free from human control; stresses , however , that there are significant doubts as to whether this speculative ai can even be achieved with our technologies and scientific laws; ### 13. highlights that many fears linked to ai are based on implausible ideas of intelligent machines endangering humanity; notes that hypothetical concepts such as general ai , artificial superintelligence and singularity which could , in theory , lead to machine intelligence outperforming human intelligence in all areas; stresses , however , that there are significant doubts as to whether this speculative ai can even be achieved with our technologies and scientific laws; nevertheless believes that investments in research , monitoring and precautions are prudent;


### 14. underlines that , on the contrary , the vast majority of ai systems currently in use , are almost or even completely risk-free; refers , for instance , to automatic translations , ‘eureka machines’ , gaming machines and robots that execute repetitive manufacturing processes; concludes that only a very small number of use cases can be categorised as risky and that only such cases require regulatory action and effective safeguards; ### 14. underlines that the vast majority of ai systems currently in use , are almost or even completely risk-free; refers , for instance , to automatic translations , ‘eureka machines’ , gaming machines and robots that execute repetitive manufacturing processes; concludes that only a very small number of use cases can be categorised as risky and that only such cases require regulatory action and effective safeguards;


### 15. considers that the public debate should therefore be more focused on the enormous potential of ai; believes that ai offers humankind the unique chance to improve almost every area of our lives , from combating global societal challenges such as climate change , pandemics and starvation , to enhancing quality of life through personalised medicine , fitness programmes and assisted living; ### 15. considers that the public debate should therefore be more focused on the enormous potential of ai; believes that ai offers humankind the unique chance to improve almost every area of our lives , from combating global societal challenges such as climate change , pandemics and starvation , to enhancing quality of life through innovative and personalised medicine , educational tools , fitness programmes and assisted living;


### 16. explains that the present report addresses six ai case studies in detail , outlining the opportunities offered by ai in the respective sector , the risks to be addressed and the obstacles currently preventing us from fully harnessing the benefits of ai; highlights that the case studies represent some of the most important ai use cases and , at the same time , reflect the main topics of the public hearings held by the aida committee during its mandate , namely health , the green deal , external policy and security , competitiveness , the future of democracy and the labour market; ### 16. explains that the present report addresses seven ai case studies in detail , outlining the opportunities offered by ai in the respective sector , the risks to be addressed and the obstacles currently preventing us from fully harnessing the benefits of ai; highlights that the case studies represent some of the most important ai use cases and , at the same time , reflect the main topics of the public hearings held by the aida committee during its mandate , namely health , the green deal , transport , external policy and security , competitiveness , the future of democracy and the labour market;


### 17. stresses that ai can unlock solutions in the health sector that could save millions of lives , improve our standards of living and bring a competitive edge to the european ict sector; ### 17. stresses that ai can unlock solutions in the health sector that could save millions of lives , improve our quality and standard of living and bring a competitive edge to the european ict and healthcare sectors;


### 18. underlines that ai is already being used to detect diseases and abnormalities at an early stage and more accurately through real-time pattern recognition and image processing , thus speeding up diagnosis and treatment and reducing unnecessary biopsies; ### 18. underlines that ai is already being used to detect diseases and abnormalities at an early stage and more accurately through real-time pattern recognition and image processing , thus speeding up diagnosis and treatment and reducing unnecessary interventions such as biopsies; stresses that there are very promising applications of ai extraction of deep phenotypic information from images , and other medical devices to inform downstream genetic analysis , and it is also expected that deep-learning algorithms will bring a quantitative leap in a variety of clinical tasks such as variant calling , genome annotation , and functional impact prediction;


### 19. highlights that ai has the potential to speed up the development of new drugs , treatments and vaccines at a lower cost , while improving the quality and overall safety of the production process; finds that ai can help predict the outcome of and responses to treatments with increasing levels of accuracy when based on high-quality data , thus increasing the effectiveness of preventive care; ### 19. highlights that ai has the potential to speed up the development of new drugs , treatments and vaccines at a lower cost , while improving the quality and overall safety of the production process; finds that ai can help predict the outcome of and responses to treatments with increasing levels of accuracy when based on high-quality data , thus increasing the effectiveness of preventive care; notes that ai must have an assistive role in healthcare , and that professional oversight should be maintained over ai clinical validation;


### 20. underlines that ai has the potential to tailor treatments and drug development to specific patient needs and enhance engagement with stakeholders and participants in the healthcare system; finds that ai and access to datasets increase the potential for healthcare professionals to better understand the patterns and symptoms of their patients and therefore provide better feedback , guidance and support; ### 20. underlines that ai has the potential to tailor treatments and drug development to specific patient needs and enhance engagement with stakeholders and participants in the healthcare system; finds that ai and access to datasets supports healthcare professionals to better understand the patterns and symptoms of their patients and therefore provide more personalised feedback , guidance and support , promoting patient safety and therapy effectiveness;


### 21. finds that the fight against covid-19 has both accelerated research into and the deployment of new technologies , notably ai applications , in the quest for improved case detection , and heightened the need for industry and publicly funded research to be able to deploy ai to strengthen the monitoring and modelling of the spread of future pandemics , without excessive limitations on freedom of movement , the infringement of data protection principles or the risk of establishing excessive surveillance regimes; ### 21. notes that as far back as 30 january 2020 , warnings about the novel coronavirus spreading beyond china were raised by the healthmap ai systems of the boston children’s hospital , and that ai has also been used during the health crisis to help detect coronavirus infections in people through the detection of visual signs of covid-19 on images from lung ct scans; finds that the fight against covid-19 has both accelerated research into and the deployment of new technologies , notably ai applications , in the quest for improved case detection , and heightened the need for industry and publicly funded research to be able to deploy ai to strengthen the monitoring and modelling of the spread of future pandemics , without excessive limitations on freedom of movement , the infringement of data protection principles or the risk of establishing excessive surveillance regimes;


### 22. highlights the potential of ai systems to relieve healthcare systems , and especially medical staff , by supporting routine tasks such as patient transport and reminding patients of their medication , and to remedy challenges posed by rapidly ageing populations; ### 22. highlights the potential of ai systems to relieve healthcare systems , and especially medical staff , by supporting routine tasks such as patient transport and reminding patients of their medication , by monitoring the right use of medical equipment and routines , especially at home , and to remedy challenges posed by rapidly ageing populations; highlights that the use of safe and efficient ai applications for administrative tasks that do not require human action can save a lot of time for healthcare workers that can be devoted to the physical meeting with patients;


### 23. stresses that consumer health applications based on ai can help to track an individual’s health status , yield data which can apply to early triage questions and encourage healthy behaviour , thus reducing the need to seek advice from a healthcare professional; ### 23. stresses that consumer health applications based on ai can help to track an individual’s health status in a more granular , objective and cost-effective way through everyday devices such as smartphones , yielding data which can be the basis for early warning and alerts regarding life-threatening illnesses such as strokes or cardiac arrests , and encourage healthy behaviour , thus reducing the workload and improving the basis for judgments of health care professionals;


### 24. stresses that ai in the health sector is particularly dependent on large amounts of personal data , data sharing , data accessibility and data interoperability to realise the full potential of ai and health , which are currently lacking; stresses the need to combat mistrust and to educate and better inform citizens about the benefits of ai in the field of health; ### 24. stresses that ai in the health sector is particularly dependent on large amounts of personal data , data quality , data sharing , data accessibility and data interoperability to realise the full potential of ai and health , which are currently lacking; stresses the need to facilitate the production of data in healthcare , via linking electronic health records with eprescribing systems allowing health professionals involved in patient care to access the necessary patient’s information , subject to the patient’s consent; stresses the need to build trust by promoting interoperability and more collaboration across many different healthcare professionals serving the same patients and to offer training on ai techniques and approaches to healthcare professionals and better inform citizens about the benefits of ai in the field of health;


### 26. underlines that automatic decision-making in healthcare applications may pose risks to patients’ well-being , although ai already outperforms doctors’ diagnoses in several instances , such as breast cancer21 ; finds that current liability frameworks do not provide sufficient legal certainty over who is accountable in the event of misdiagnosis through ai , for example; ### 26. underlines that automatic decision-making in healthcare applications may pose risks to patients’ well-being , although ai improves accuracy of screening or even outperforms doctors’ diagnoses in several instances , such as breast cancer21 ; finds that current liability frameworks do not provide sufficient legal certainty over who is accountable in the event of misdiagnosis and wrong treatment through ai , for example;


### 104. calls for the creation of an adequately resourced mechanism to supervise the uniform , eu-wide implementation and enforcement of the upcoming ai laws; prefers a european ai board over the creation of a costly new eu agency for ai; suggests , however , that this board should be made up of not only the national ai supervisory authorities and the european data protection board (edpb) , but also a broad range of relevant eu bodies , such as the eu agency for fundamental rights , the high-level expert group on ai , the eu agency for cybersecurity , the european consumer consultative group , and standardisation organisations the european committee for standardization , the european committee for electrotechnical standardization and the european telecommunications standards institute; ### 104. calls for the creation of an adequately resourced mechanism to supervise the uniform , eu-wide implementation and enforcement of the upcoming ai laws; prefers a european ai board over the creation of a costly new eu agency for ai; suggests , however , that this board should be made up of not only the national ai supervisory authorities and the european data protection board (edpb) , but also a broad range of relevant eu bodies , such as the eu agency for fundamental rights , the high-level expert group on ai , the eu agency for cybersecurity , the european consumer consultative group , and standardisation organisations such as the european committee for standardization , the european committee for electrotechnical standardization and the european telecommunications standards institute , and without voting rights , interested european business , research and society organizations;


### 105. highlights that the underlying objective of the eu’s digital strategy , as well as that of the ai strategy is to create a ‘european way’ in a digitalised world; clarifies that this approach should be human-centred , value-oriented and based on the concept of the social market economy; underlines that the individual , with their respective dignity and individual freedoms , should always remain at the centre of all political considerations; ### 105. highlights that the underlying objective of the eu’s digital strategy , as well as that of the ai strategy is to create a ‘european way’ in a digitalised world that will allow europe to seize all the competitiveness potential for its economy and ensure the wellbeing of its population; clarifies that this approach should be human-centred , value-oriented and based on the concept of the social market economy; underlines that the individual , with their respective dignity and individual freedoms , should always remain at the centre of all political considerations;


### 109. specifies that the classification of technologies as ‘high-risk’ should be based on the concrete use and context , complexity and autonomy of the ai system , the probability and likelihood of the worst-case scenario , the severity of the harm and its irreversibility , the techniques used and the governance arrangements adopted; stresses that this classification should be introduced together with best practices and guidance for ai developers and should also recognise that ai technologies can significantly reduce certain risks; ### 109. specifies that the classification of technologies as ‘high-risk’ should be based on the concrete use and context , complexity and autonomy of the ai system , the probability and likelihood of the worst-case scenario , the severity of the harm and its irreversibility , the techniques used and the governance arrangements adopted; stresses that this classification should be introduced together with best practices and guidance for ai developers and should also recognise that ai technologies can significantly reduce certain risks; considers that developing , testing and using of general ai systems are specific exceptions cases required to be classified high risk by default;


### 111. underlines the need to address open ethical questions raised by new technological possibilities , but clarifies that new ai ethical guidelines should not set up stricter rules than those already existing for human or automated actions; proposes that on these grounds the eu should introduce ethical guidelines that consist of three categories of core values and principles; ### 111. underlines the need to address open ethical questions raised by new technological possibilities , but clarifies that new ai ethical guidelines should not set up stricter rules than those already existing for human or automated actions; proposes that on these grounds the eu should introduce ethical guidelines that consist of three categories of core values and principles; stresses the importance of funding research on the ethical aspects of ai development;


### 114. is convinced that efforts to completely ‘de-bias’ ai algorithms are frequently misguided , because this strategy wrongly suggests that bias-free data sets exist; notes that in this regard the requirement that data used to train ai systems is ‘complete and free of errors’ needs to be revisited; stresses , however , that the eu should at the same time cooperate very closely with ai developers to counterbalance structural biases in our societies and daily life; ### 114. is convinced that efforts to completely ‘de-bias’ ai algorithms are frequently misguided , because this strategy wrongly suggests that bias-free data sets exist; notes that in this regard the requirement that data used to train ai systems is ‘complete and free of errors’ needs to be revisited; notes that even an ai system that has been tested will inevitably encounter real world scenarios that might produce biased results when deployed in a setting that differs from the composition of its training and testing data and underlines the importance of evaluating the entire lifecycle of an ai product or service; stresses , however , that the eu should at the same time cooperate very closely with ai developers to counterbalance structural biases in our societies and daily life;


### 117. elaborates that obligatory ex ante risk self-assessments , comparable with ce markings or data protection impact assessments , combined with market surveillance based on clear rules and standards , and complemented with ex post enforcement for high-risk ai systems , seem to be a sufficiently robust governance approach for ai; warns that overly burdensome conformity assessment obligations could create significant burdens that make the business models of ai developers and companies economically unviable; ### 117. elaborates that obligatory ex ante risk self-assessments , comparable with ce markings or data protection impact assessments , combined with market surveillance based on clear rules and standards , and complemented with ex ante third party conformity assessment and ex post enforcement for high-risk ai systems , seem to be a sufficiently robust governance approach for ai; warns that overly burdensome conformity assessment obligations could create significant burdens that make the business models of ai developers and companies economically unviable;


### 118. notes that in order to increase product safety and improve the identification of faults , the developers of high-risk ai should at least be obliged to ensure that accessible logs of algorithmic activity are maintained securely; considers that developers should also design high-risk ai systems with embedded mechanisms – ‘kill switches’ – for human intervention to immediately halt automated activities at any moment; ### 118. notes that in order to increase product safety and improve the identification of faults , the developers of high-risk ai should at least be obliged to ensure that accessible logs of algorithmic activity are maintained securely; considers that developers should also design high-risk ai systems with embedded mechanisms – ‘kill switches’ – for human intervention to safely halt automated activities at any moment;


### 120. notes that certain changes to the legal definitions of ‘product’ , including integrated software applications , digital services and inter-product dependency , and ‘producer’ , including backend operator , service provider and data supplier , do however seem necessary to ensure that compensation is available for harm caused by emerging technologies; stresses , however , that an overly broad approach to the definition of ‘product’ should be avoided , as this may make it difficult to differentiate between ai and other algorithms; ### 120. notes that certain changes to the legal definitions of ‘product’ , including integrated software applications , digital services and inter-product dependency , and ‘producer’ , including backend operator , service provider and data supplier , however may be considered to ensure that compensation is available for harm caused by emerging technologies; stresses , however , that an overly broad approach to the definition of ‘product’ should be avoided , as this may make it difficult to differentiate between ai and other algorithms;


### 124. urges the commission to continue its work on removing key barriers for developers and companies in areas such as country-based discrimination , burdensome market access procedures and high regulatory costs , as well as to address the frequent use of derogations which results in diverging rules among different member state jurisdictions; ### 124. urges the commission to continue its work on removing key barriers for developers and companies in areas such as country-based discrimination , burdensome market access procedures and high regulatory costs , as well as to address the frequent use of derogations which results in diverging rules among different member state jurisdictions; highlights that for companies operating in a cross-border environment , eu-wide rules on ai , in contrast to a fragmented country-by-country approach , is a welcomed development that will help foster european leadership on ai development and deployment;


### 124. urges the commission to continue its work on removing key barriers for developers and companies in areas such as country-based discrimination , burdensome market access procedures and high regulatory costs , as well as to address the frequent use of derogations which results in diverging rules among different member state jurisdictions; ### 124. urges the commission to continue its work on removing key barriers for developers and companies in areas such as country-based discrimination , burdensome market access procedures , including overlapping frameworks compounding compliance and conformity assessments , high regulatory costs , as well as to address the frequent use of derogations which results in diverging rules among different member state jurisdictions;


### 125. is convinced that the current national and european competition and antitrust frameworks need to be reformed in order to better target abuses of market power and algorithmic collusion in the digital economy , as well as to better address the risks of new emerging monopolies without compromising innovation; ### 125. is convinced that the current national and european competition and antitrust frameworks need to be reformed in order to better target abuses of market power and algorithmic collusion in the digital economy , as well as to better address the risks of new emerging monopolies without compromising innovation; notes that getting the balance right in ensuring that obligations drive policy outcomes , while allowing ai innovators sufficient flexibility in meeting those obligations , is going to be critical;


### 128. stresses that ai requires powerful hardware to make sophisticated algorithms useable , including high-performance and quantum computing and the iot; urges the maximisation of funding and research for such ai-enabled emerging technologies; finds that , similarly , nano-technologies and chips are essential to enabling ai to be embedded in , for example , medical devices , which also requires priority funding; ### 128. stresses that ai requires powerful hardware to make sophisticated algorithms useable , including high-performance and quantum computing and the iot; urges the maximisation of funding and research for such ai-enabled emerging technologies; finds that , similarly , nano-technologies and chips are essential to enabling ai to be embedded in , for example , medical devices or satellites , which also requires priority funding;


### 129. highlights that a functioning and fast infrastructure for ai must be based on a fair , safe and high-quality foundation by avoiding gaps in digital high-speed connectivity , which requires 5g roll-out in all urban areas by 2030 , as well as ultra-fast broadband networks and spectrum policy with licence conditions that do not distort competition; urges member states to continue to implement the 5g toolbox , specifically enabling legislation related to the risk assessment of suppliers and service providers; calls for the broadband cost reduction directive to be put into practice to facilitate network deployment; ### 129. highlights that a functioning and fast infrastructure for ai must be based on a fair , safe and high-quality foundation by avoiding gaps in digital high-speed connectivity , which requires 5g roll-out in all urban areas by 2030 , as well as ultra-fast broadband networks and spectrum policy with national licence conditions that ensure predictability , reward risk-taking and foster long-term investment in very high capacity networks; urges member states to continue to implement the 5g toolbox , specifically enabling legislation related to the risk assessment of suppliers and service providers; calls for the broadband cost reduction directive to be put into practice to facilitate network deployment;


### 131. calls on the commission to establish a precise strategy with a clear timetable for 6g roll-out to better prepare for the next wave of digital infrastructure , enabling europe to take the lead; ### 131. calls on the commission to establish a precise strategy with a clear timetable for 6g roll-out to better prepare for the next wave of digital infrastructure , blending terrestrial and space , enabling europe to take the lead;


### 132. finds that it will not be possible to achieve the necessary deployment of dense edge-node connectivity for 5g in rural areas , where half of european households are not even connected through fibre; calls for a clear strategy on fibre-optic network deployment and broadband roll-out in rural areas , which is also key for data intensive technologies such as ai; recommends that european investment bank support for connectivity projects in rural areas be enhanced; ### 132. finds that it will not be possible to achieve the necessary deployment of dense edge-node connectivity for 5g in rural areas , where half of european households are not even connected through fibre; calls for a clear strategy on fibre-optic network deployment and broadband roll-out in rural areas with satellite complementarity , which is also key for data intensive technologies such as ai; recommends that european investment bank support for connectivity projects in rural areas be enhanced;


### 134. urges the eu to take the lead in making green digital infrastructure climate neutral and energy efficient by 2030; calls for coordinated global multilateral action to use ai in the fight against climate change and environmental degradation; ### 134. urges the eu to take the lead in making green digital infrastructure climate neutral and energy efficient by 2030; calls for coordinated global multilateral action to use ai in the fight against climate change and environmental degradation; notes that ai is used in the development , improvement and discovery of sustainable materials and sustainable technologies; however , stresses that these efforts are still at their beginning and need to be further expanded;


### 138. calls on the commission to simplify and streamline the structure of research funding instruments by reducing the effort and time needed to obtain decisions when applying for grants; stresses the need to improve the quality and consistency of proposal reviews and to increase the predictability of funding instruments and their timing to support long-term planning , using the european ai research roadmap; ### 138. calls on the commission to simplify and streamline the structure of research funding instruments by reducing the effort and time needed to obtain decisions when applying for grants; stresses the need to improve the quality and consistency of proposal reviews and to increase the predictability of funding instruments and their timing to support long-term planning , using the european ai research roadmap; calls on the commission to explore the creation of specific initiatives dedicated to attract ai talents and to fund more applications in the field of ai , combining different instruments , such as the european research council , the marie curie actions , the european innovation council and the european institute of technology and innovation; highlights the need to prioritise eu-led projects to set global norms in the field of ai with the view to ensure geopolitical independence of the eu and digital sovereignty; stresses the need to prioritise and optimise research investment at eu level for example by providing sustainable financial resources to the eu innovation hub for internal security and its ai accountability projects led by fra , eurojust and europol;


### 30. stresses that the energy transition will not take place without digitalisation , which will be achieved to a significant extent through ai; underlines that ai can monitor , optimise and reduce energy consumption and production , as well as support the integration of renewable energies into existing electricity grids; ### 30. stresses that the energy transition will not take place without digitalisation , which will be achieved to a significant extent through ai; underlines that ai can monitor , optimise and reduce energy consumption and production , as well as support the integration of renewable energies into existing electricity grids; underlines that smart meters , efficient lighting , cloud computing and distributed software together with an ai component have the potential to transform energy use patterns and promote responsible usage;


### 31. highlights that the growing complexity of an energy transition system , with increased volatile renewable generation and changes in load management , makes increasing automated control necessary for energy supply security; stresses that ai benefits for supply security , especially in the operation , monitoring , maintenance and control of water , gas and electricity networks , must be taken into account in the regulation of these networks; ### 31. highlights that the growing complexity of an energy transition system , with increased volatile renewable generation and changes in load management , makes increasing automated control necessary for energy supply security; stresses that ai benefits for supply security , especially in the operation , monitoring , maintenance and control of water , gas and electricity networks , must be taken into account in the regulation of these networks; notes however that ai enhanced grid technologies will introduce millions of intelligent components with common vulnerabilities , adding to the energy networks a high number of potential attack points;


### 36. is concerned that the global community does not seem likely to reach an agreement on minimum standards for the responsible use of ai , as the stakes , in particular for the most powerful nations , are too high; believes , however , as a matter of principle , in the potential of democratic nations to jointly shape the international debate , to work together towards certain minimum standards , and thereby to promote multilateralism , interoperability and data sharing on the international stage; ### 36. is concerned that the global community does not seem likely to reach an agreement on common standards for the responsible use of ai , as the stakes , in particular for the most powerful nations , are too high; believes , however , as a matter of principle , in the potential of democratic nations to jointly shape the international debate , to work together towards certain common standards , and thereby to promote multilateralism , interoperability and data sharing on the international stage; stresses that the recently launched eu us trade and technology council has the potential to become a valuable tool in this respect;


### 37. observes that chinese nationals have assumed leadership positions in the international organization for standardization , the international electrotechnical commission and the international telecommunication union , the three largest and best-established standard-setting organisations in the world , while the chinese government has also signed standards and cooperation agreements with 52 other countries through its belt and road initiative; warns that since several of their promoted standards , including on ai technologies and in particular in relation to government surveillance and individual liberties , are not in line with eu values , the chinese standard offensive poses a crucial geopolitical challenge for the eu , while also giving china a first-mover advantage in economic terms; ### 37. observes that chinese nationals have assumed leadership positions in the international electrotechnical commission and the international telecommunication union , two of the largest and best-established standard-setting organisations in the world , while the chinese government has also signed standards and cooperation agreements with 52 other countries through its belt and road initiative; warns that since several of their promoted standards , including on ai technologies and in particular in relation to government surveillance and individual liberties , are not in line with eu values , the chinese standard offensive poses a crucial geopolitical challenge for the eu , while also giving china a first-mover advantage in economic terms;


### 39. notes that the use of ai systems in defence-related developments is considered a game changer in military operations; states that the key advantage lies in the potential to engage in armed conflicts with a reduced risk of physical harm to one’s own military personnel and as a means to reduce military response time; ### 39. notes that the use of ai systems in defence-related developments is considered a game changer in military operations; states that the key advantage lies in the potential to radically improve targeting cycles , logistics , battlefield awareness , tactical and strategic decision making , and to engage in armed conflicts with a reduced risk of physical harm to one’s own military personnel;


### 41. notes that ai technology can also be used as a means for various forms of hybrid warfare; specifies that it could for instance be mobilised to trigger information warfare , by using fake social media accounts , to weaponise interdependence , by gathering valuable information or denying network access to adversaries , or to create disturbances in the economic and financial systems of other countries; ### 41. notes that ai technology can also be used as a means for various forms of hybrid warfare; specifies that it could for instance be mobilised to trigger information warfare , by using fake social media accounts , to weaponise interdependence , by gathering valuable information or denying network access to adversaries , or to create disturbances in the economic and financial systems of other countries; highlights the work of the european defence agency (eda) in developing a thorough taxonomy for ai in the domain of defence and stresses the importance of continuously monitoring the ai and defence landscape;


### 43. elaborates that the internet of things , as well as the fact that ai systems nowadays run a significant amount of key critical infrastructure , such as energy grids , the food chain , the atm network and hospital logistics , has created a massive ai cybersecurity threat; predicts that states will focus more and more on protecting their it logistics and care delivery as a domestic asset , which could in turn create the temptation to invoke ‘ai autarchy’; ### 43. elaborates that the internet of things , as well as the fact that ai systems nowadays run a significant amount of key critical infrastructure , such as energy grids , the space sector , the food chain , the atm network and hospital logistics , has created a massive ai cybersecurity threat; predicts that states will focus more and more on protecting their it logistics and care delivery as a domestic asset , which could in turn create the temptation to invoke ‘ai autarchy’;


### 44. explains that the high level of accuracy that ai can achieve may pose security risks , as it can induce humans to place such confidence in ai as to trust it more than their own judgment; notes that experiments have shown that this can elevate the level of autonomy of ai beyond the supporting role for which it was originally designed and means that humans miss opportunities to gain experience and refine their skills and knowledge of ai systems; observes that this type of ai overuse has , for example , been cited as a major factor in several aircraft crashes25 ; ### 44. explains that the high level of accuracy and performance that ai can achieve may pose security risks , as it can induce humans to place such confidence in ai as to trust it more than their own judgment; notes that experiments have shown that this can elevate the level of autonomy of ai beyond the supporting role for which it was originally designed and means that humans miss opportunities to gain experience and refine their skills and knowledge of ai systems; observes that this type of ai overuse has , for example , been cited as a major factor in several aircraft crashes25;


### 45. highlights however that ai’s core characteristics also make the technology an ideal tool to enhance security; specifies that it can be used to synthesise large amounts of data , perform behavioural analysis of network activities and detect specific patterns; stresses that these elements would allow for better prediction and assessment of the threat level , faster decision-making processes , improved reactivity and the more effective securing of endpoint devices; ### 45. highlights however that ai’s core characteristics also make the technology an ideal tool to enhance security; specifies that it can be used to verify with mathematical certainty the unbreakability of safety-critical software , such as operating systems , compilers , cryptographic systems , and others; also specifies that it can be used to synthesise large amounts of data via automated information extraction or automated information classification , and to detect specific patterns; stresses that these elements would allow for better prediction and assessment of the threat level , faster decision-making processes , improved reactivity and the more effective securing of endpoint devices;


### 46. underlines , in particular , the potential inherent in enabling law enforcement agencies to proactively assess and predict ai misuse , as well as to counter it effectively by using ai technologies themselves; underlines that such ai-supported law enforcement activities do , however , require clear transparency rules , highly skilled employees and access to large amounts of relevant data; ### 46. underlines , in particular , the potential inherent in enabling law enforcement agencies to proactively assess and predict ai misuse , as well as to counter it effectively by using ai technologies themselves; underlines that such ai-supported law enforcement activities do , however , require clear transparency rules , a powerful it infrastructure , highly skilled employees , and access to relevant quality datasets;


### 63. acknowledges at the same time that the very same ai technologies used to address fundamental societal problems and achieve important public policy goals could also pose crucial ethical and legal questions; notes that there have already been documented instances which have led to serious wrongdoing within the eu; notes that in practice , member states rely heavily on the police to collect data , but also on private entities whose activities are often not supervised and who regularly sell the collected and highly sensitive data to other third parties; clarifies that this practice runs counter to european values and undermines the high level of fundamental rights in the eu , in particular the right to privacy; ### 63. acknowledges at the same time that the very same ai technologies used to address fundamental societal problems and achieve important public policy goals could also pose crucial ethical and legal questions; notes that there have already been documented instances which have led to serious wrongdoing within the eu; notes that in practice , data collection by member states’ law enforcement authorities is subject to independent scrutiny (externally by the data protection authorities , internally by the respective data protection officer) which , however , is often not the case for private entities that regularly sell the collected and highly sensitive data to other third parties; clarifies that this practice runs counter to european values and undermines the high level of fundamental rights in the eu , in particular the right to privacy;


### 67. underlines that ai could , however , also be used to reduce anti-democratic and unethical activities on platforms and as a means to stop the distribution of fake news; notes that the effective use of ai for this purpose has so far been prevented by strongly diverging definitions of hate speech among member states and the lack of consensus on how to harness ai to effectively filter out illegal and harmful content; explains that it is also problematic that divisive language leads to greater user engagement , which is why removal of such language would be in direct conflict with the platform’s business model , based on maximising user engagement; ### 67. underlines that ai could , however , also be used to reduce anti-democratic and unethical activities on platforms and as a means to stop the distribution of fake news; notes that the effective use of ai for this purpose has so far been prevented by strongly diverging definitions of hate speech among member states and the lack of consensus on how to harness ai to effectively filter out illegal and harmful content; explains that divisive language may lead to greater user engagement , which is why removal of such language would be in direct conflict with the platform’s business model , based on maximising user engagement;


### 68. stresses that bias in ai systems often occurs due to a lack of diverse and high-quality training data , for instance where data sets are used which do not sufficiently cover discriminated groups , or where the task definition or requirement setting themselves were biased; notes that bias can also arise due to a limited volume of training data , which can result from overly strict data protection provisions , or where a biased ai developer has compromised the algorithm; points out that some biases in the form of reasoned differentiation are , on the other hand , also intentionally created in order to improve the ai’s learning performance under certain circumstances; ### 68. stresses that bias in ai systems , especially when it comes to deep learning systems , often occurs due to a lack of diverse and high-quality training and testing data , for instance where data sets are used which do not sufficiently cover discriminated groups , or where the task definition or requirement setting themselves were biased; notes that bias can also arise due to a limited volume of training and testing data , which can result from overly strict data protection provisions , or where a biased ai developer has compromised the algorithm; points out that some biases in the form of reasoned differentiation are , on the other hand , also intentionally created in order to improve the ai’s learning performance under certain circumstances;


### 69. raises the question of whether certain biases can be resolved by using more diverse datasets , given the structural biases present in our society; specifies in this regard that algorithms learn to be as discriminatory as the society they observe and then suggest decisions that are inherently discriminatory , which again contributes to exacerbating discrimination within society; concludes that there is therefore no such thing as a completely impartial and objective algorithm; ### 69. raises the question of whether certain biases can be resolved by using more diverse datasets , given the structural biases present in our society; specifies in this regard that algorithms only learn to be as discriminatory as the society whose datasets they observe and then suggest decisions that might be inherently discriminatory , which exacerbates discrimination within society; concludes that there is therefore no such thing as a completely impartial and objective algorithm , like there is no completely impartial and objective human;


### 70. believes that that the adoption of ai , if combined with the necessary support infrastructure and training , can substantially increase productivity , innovation , growth and job creation , with expectations of labour productivity set to increase by 11-37 %26 by 2035; ### 70. believes that the adoption of ai , if combined with the necessary support infrastructure and training , can substantially increase productivity , innovation , growth and job creation , with expectations of labour productivity set to increase by 11-37 %26 by 2035;


### 71. stresses that although ai may replace some tasks , including mundane , labour-intensive or dangerous tasks , it will create new , higher value-added employment; stresses that ai is currently substituting or complementing humans in a subset of tasks but that it is not yet having detectable aggregate labour market consequences27 ; stresses , however , the potential for an increase in income inequality if ai is augmenting high-skill occupations and replacing low-skill occupations , and that such possible effects need to be prepared for; ### 71. stresses that although ai may replace some tasks , including mundane , labour-intensive or dangerous tasks , it will create new , higher value-added employment; stresses that ai is currently substituting or complementing humans in a subset of tasks but that it is not yet having detectable aggregate labour market consequences27 ; stresses , however , the potential for an increase in income inequality if ai is augmenting high-skill occupations and replacing low-skill occupations , and that such possible effects need to be prepared for; highlights that the potential replacement of some jobs as well as resulting economic and social implications require research and foresight;


### 72. highlights that ai implementation also represents an opportunity for significant cultural change within organisations , including improved workplace safety , better work-life balance and more effective training and guidance; is of the opinion that human-empowering ai applications could also create new job opportunities , in particular for those who , because of natural restrictions such as disabilities or living circumstances , were initially bound to less qualified jobs; ### 72. highlights that ai implementation also represents an opportunity for significant cultural change within organisations , including improved workplace safety , better work-life balance and more effective training and guidance; is of the opinion that human-empowering ai applications could also create new job opportunities , in particular for those who , because of natural restrictions such as disabilities or living circumstances , were initially bound to less qualified jobs; stresses the need to use ai assistance in the workplace to provide time for humans to improve the quality of their output instead of just increasing the workload per human or reducing the workforce;


### 74. considers that the adaptation of the workforce in terms of ai education and retraining is of vital importance , as 52 %28 of the current european workforce urgently requires retraining; highlights that current concepts of learning and working are still defined to too great an extent by the job market needs of a pre-digital world , which also contributes to a growing skills gap and a new digital divide for both citizens and businesses who do not have access to a secure digital space; stresses that enhancing digital literacy contributes to achieving the sdgs , in particular those on education , human capital and infrastructure; ### 74. stresses that it is paramount to enable individuals to remain productive in a continuously evolving workplace , which requires empowering them with excellent skills programs at all stages of life: in primary and secondary schools , in vocational and college programs , and in ongoing adult training programs; considers that the adaptation of the workforce in terms of ai education and retraining is of vital importance , as 52 %28 of the current european workforce urgently requires retraining; highlights that current concepts of learning and working are still defined to too great an extent by the job market needs of a pre-digital world , which also contributes to a growing skills gap and a new digital divide for both citizens and businesses who do not have access to a secure digital space; stresses that enhancing digital literacy contributes to achieving the sdgs , in particular those on education , human capital and infrastructure; highlights the incredible gain in knowledge of new forms of working and learning due to the covid-19 crisis and the need to build upon that;


### g) three recurring findings in all six case studies ### g) three recurring findings in all seven case studies


### 76. notes that there are a number of transversal obstacles that the eu needs to overcome in order to achieve a widespread use of ai and to fully harness its benefits; states that in particular , legal uncertainty , insufficient digital infrastructure and a lack of ai skills can be observed as barriers to the successful application of ai in all fields analysed; ### 76. notes that there are a number of transversal obstacles that the eu needs to overcome in order to achieve a widespread use of ai and to fully harness its benefits; states that in particular , legal uncertainty , excessive bureaucracy , insufficient digital infrastructure and a lack of ai skills can be observed as barriers to the successful application of ai in all fields analysed;


### 76. notes that there are a number of transversal obstacles that the eu needs to overcome in order to achieve a widespread use of ai and to fully harness its benefits; states that in particular , legal uncertainty , insufficient digital infrastructure and a lack of ai skills can be observed as barriers to the successful application of ai in all fields analysed; ### 76. notes that there are a number of transversal obstacles that the eu needs to overcome in order to achieve a widespread use of ai and to fully harness its benefits; states that in particular , legal uncertainty , excessive bureaucracy. insufficient digital infrastructure and a lack of ai skills can be observed as barriers to the successful application of ai in all fields analysed;


### 77. concludes from the case studies examined , furthermore , that it is not specific ai technologies themselves that are risky , but certain use cases; points in particular to dual-use ai systems such as drones , the uses of which can vary drastically from consumer recreation to warfare , with the worst-case scenario being swarms of inexpensive , armed microdrones used to kill specific human targets; ### 77. concludes from the case studies examined , furthermore , that it is not specific ai technologies themselves that are risky , but certain use cases; points to the danger of robots or embodied ai that can wield physical power , here especially to the problematic of dual- or multi-use ai systems such as drones , the uses of which can vary drastically from consumer recreation to warfare , potentially leading in the future to the wide use of automated swarms of inexpensive , armed micro-drones;


### 83. highlights that chinese president xi jinping underlined as early as 2013 the importance of technologies in geopolitics , the role of public policies in defining long-term objectives and the fact that ai offers an opportunity to overtake the us in terms of military supremacy; stresses further that the chinese government subsequently put forward the made in china 2025 plan in 2015 and the next generation ai development plan in 2017 , both of which had the clear targets of making china the global leader in ai by 2030; notes that the 2018 ai standardisation white paper further outlined how the socialist market economy can develop international standards and strategically engage in international standardisation organisations; ### 83. highlights that chinese president xi jinping underlined as early as 2013 the importance of technologies in geopolitics , the role of public policies in defining long-term objectives and the fact that ai offers an opportunity to overtake the us in terms of military supremacy; stresses further that the chinese government subsequently put forward the made in china 2025 plan in 2015 and the next generation ai development plan in 2017 , both of which had the clear targets of making china the global leader in ai by 2030; notes that the 2018 chinese ai standardisation white paper further outlined how the socialist market economy can develop international standards and strategically engage in international standardisation organisations;


### 84. observes that on the global stage , china actively promotes international ai partnership as a way to export its own ai-based government surveillance practices , social scoring system and censorship strategies; emphasises that heavy investment abroad under the digital silk road initiative are also used as a means to spread chinese ai globally and to bring other countries under chinese influence; concludes that the chinese approach is therefore built upon deploying ai domestically as well as exporting ai technologies that follow predetermined standards that are in line with the ideology of the chinese communist party; ### 84. observes that on the global stage , china actively promotes international ai partnership as a way to export its own ai-based government surveillance practices , social scoring system and censorship strategies; emphasises that heavy investment abroad under the digital silk road initiative are also used as a means to spread chinese ai globally and to bring other countries under chinese influence; concludes that the chinese approach is therefore built upon deploying ai domestically as well as exporting ai technologies that follow predetermined standards that are in line with the ideology of the chinese communist party; notes with concern that china’s international ai strategy has far-reaching implications that go beyond imposing technological standards or maintaining technological competitiveness and is , in fact , a bid for global supremacy in the future digital world;


### 86. emphasises that central to the eu regulatory approach is a strong attention to ethical considerations in line with core human rights values and democratic principles; underlines that the commission thereby hopes to achieve another gdpr-like ‘brussels effect’ , meaning that the eu’s regulatory and market power leads to a competitive edge in ai; states that establishing the world’s first regulatory framework for ai could indeed leverage a first-mover advantage in setting international ai standards based on european values , as well as successfully exporting ‘trustworthy ai’ around the world; ### 86. emphasises that central to the eu regulatory approach is a strong attention to the development of a european data space as well as ethical considerations in line with core human rights values and democratic principles; underlines that the commission thereby hopes to achieve another gdpr-like ‘brussels effect’ , meaning that the eu’s regulatory and market power leads to a competitive edge in ai; states that establishing the world’s first regulatory framework for ai could indeed leverage a first-mover advantage in setting international ai standards based on european values , as well as successfully exporting ‘trustworthy ai’ around the world; notes however that such a step is far from certain and warns that there is at the same time the risk of a first-mover disadvantage if the new ai regulatory framework is not well balanced and able to provide the favourable regulatory environment required to attract innovative ai developers;


### 86. emphasises that central to the eu regulatory approach is a strong attention to ethical considerations in line with core human rights values and democratic principles; underlines that the commission thereby hopes to achieve another gdpr-like ‘brussels effect’ , meaning that the eu’s regulatory and market power leads to a competitive edge in ai; states that establishing the world’s first regulatory framework for ai could indeed leverage a first-mover advantage in setting international ai standards based on european values , as well as successfully exporting ‘trustworthy ai’ around the world; ### 86. emphasises that central to the eu regulatory approach is a strong attention to ethical considerations in line with core human rights values and democratic principles; underlines that the commission thereby hopes to achieve another gdpr-like ‘brussels effect’ , meaning that the eu’s regulatory and market power leads to a competitive edge in ai; states that establishing the world’s first regulatory framework for ai could indeed leverage a first-mover advantage in setting international ai standards based on european values , as well as successfully exporting ‘trustworthy ai’ around the world , but that this is far from certain; warns that there is also risk of a first-mover disadvantage if the regulation is not well balanced and able to provide the favourable regulatory environment required to attract innovative ai developers;