6.12.2022
EN
Official Journal of the European Union
C 465/79 Tuesday 3 May 2022
58.
Highlights, however, that AI can be used to predict power failures and identify maintenance needs with great accuracy; specifies, in addition, 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 and system vulnerabilities, faster decision-making processes, improved reactivity and securing endpoint devices more effectively;
59.
Underlines, in particular, the inherent potential in enabling law enforcement agencies to identify and counter criminal activity, which is aided by AI technology; underlines that such AI-related law enforcement activities do, however, require full respect for fundamental rights, strict democratic oversight, clear transparency rules, a powerful IT infrastructure, human oversight, highly skilled employees and access to relevant and high-quality data;
d) AI and competitiveness
60.
Notes that more and more products and services along the value chain will be interconnected in the near future, with AI and automation playing an important role in many manufacturing processes, operations and business models; underlines the paramount importance of basic research for the development of AI industrial ecosystems as well as substantial investment to promote digital public administration and upgrade digital infrastructure;
61.
Observes that despite the significant increase in venture capital and other early-stage funding in the last two years, many European industries are lagging behind and the current funding levels in the EU are still insufficient and should be substantially ramped up in order to match the dynamism of leading AI ecosystems like Silicon Valley and elsewhere; highlights the peculiar cluster-network structure of the EU innovation ecosystem, as opposed to centralised (and state-supported) innovation ecosystems;
62.
Underlines that AI can be a game changer for the competitiveness of EU industry and has the potential to increase productivity, accelerate innovation, improve manufacturing processes and help to monitor the resilience of European supply chains;
63.
Points to the risk of supply chains being disrupted due to economic decoupling or catastrophic events such as pandemics or climate change-related phenomena; stresses that using AI can help to detect patterns of disruption in supply chains and inform predictive maintenance, which could support the diversification of suppliers;
64.
Notes that companies that have initiated digital disruption have often been rewarded with significant gains in market share; notes that recent studies indicate that this pattern is likely to repeat itself with even more intensity as companies that adopt AI often collect large amounts of data, which tends to enhance their competitive position; is concerned about the resulting risks of market concentration to the detriment of SMEs and start-ups;
65.
Emphasises that this outlook is particularly concerning since the largest incumbent tech companies that will likely also dominate AI technologies are gatekeepers to markets, while capturing most of the value that is generated; stresses that because the data that drives the AI sector is overwhelmingly collected from the very same large tech companies, which offer users access to services in exchange for data and exposure to targeted advertisements, their existing market dominance is likely to, in itself, become a driver of further market dominance; points out that many of these tech companies are headquartered outside the EU yet manage to capture the value generated by data on European customers, thus gaining a competitive advantage;
66.
Welcomes the recent Commission communication calling for competition rules to be updated to make them fit for the digital age (29) and stresses the key role of ex ante measures, including the future Digital Markets Act, in counterbalancing concentration before it arises; underlines, moreover, the role that standardisation and regulatory cooperation can play in addressing this issue, by facilitating the global development of products and services irrespective of their physical location;
(29)
Commission communication of 18 November 2021 on a competition policy fit for new challenges (COM(2021)0713).