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Rethinking AI regulation: Are new laws really necessary?

Specialised AI regulation may not be necessary, as existing laws already cover many aspects of AI-related concerns. Jovan Kurbalija, executive director of Diplo, argues in his blog that before enacting new AI-specific rules, society must assess whether current legal frameworks—such as consumer protection, data governance, and liability laws—can effectively regulate AI.

He draws historical parallels, citing the 4,000-year-old Code of Hammurabi as an example of legal accountability principles that remain relevant today. Kurbalija explains that legal systems have always adapted to technological advances without requiring entirely new legal categories.

He also highlights how laws governing property, commerce, and torts were successfully applied to the internet in the 1990s, suggesting that AI can be regulated similarly. Instead of focusing on abstract ethical discussions, he argues that enforcing existing legal frameworks will ensure accountability for AI developers and users.

The blog post also examines different layers of AI regulation, from hardware and data laws to algorithmic governance and AI applications. While AI-generated content has raised legal disputes over intellectual property and data use, these challenges, Kurbalija contends, should be addressed by refining current laws rather than introducing entirely new ones. He points to ongoing legal battles involving OpenAI, the New York Times, and Getty Images as examples of courts adapting existing regulations to the AI landscape.

Ultimately, Kurbalija asserts that AI is a tool, much like a hammer or a horse, and does not require its own distinct legal system. What matters most, he insists, is holding those who create and deploy AI accountable for its consequences. Society can effectively govern AI without requiring specialised regulations by reinforcing traditional legal principles such as liability, transparency, and justice.

France secures billions for AI expansion

France is set to receive an unprecedented €83 billion in AI-related investments, with Canadian firm Brookfield committing €20 billion by 2030. The majority of this funding will be allocated to data centres, including a massive one in Cambrai with a capacity of up to one gigawatt. This surge in investment follows the announcement of a €50 billion AI campus project between France and the UAE.

A key factor behind France’s appeal is its energy infrastructure. With 65% of its electricity generated from nuclear power and another 25% from renewables, the country offers a sustainable solution for tech companies seeking to reduce their carbon footprint. This has positioned France as an attractive location for power-intensive AI data centres.

Alongside international funding, France’s public investment bank Bpifrance has pledged €10 billion to support AI startups, while telecom giant Iliad is investing €3 billion in AI-focused infrastructure. With the AI Action Summit set to take place in Paris, more investment announcements could be on the horizon.

AI Action Summit in Paris shapes the future of AI amid divergent visions

World leaders gathered in Paris for the second day of the Artificial Intelligence (AI) Action Summit, where the focus turned to balancing national interests with global cooperation. Representatives from nearly 100 countries, including the US, China, and India, aimed to find common ground on sustainable AI development. However, questions lingered over whether the US would endorse a draft statement promoting an inclusive, human rights-based approach to AI.

French President Emmanuel Macron emphasised Europe’s commitment to clean energy as a cornerstone for AI growth, contrasting it with the US’s fossil fuel-driven strategy. ‘We won’t adopt a ‘drill, baby, drill’ policy,’ Macron said, ‘but instead ‘plug, baby, plug’ into our clean energy resources.’ This stance reflects Europe’s ambition to lead in sustainable AI innovation while addressing the technology’s massive energy demands.

Despite differing energy policies, there was consensus on one point: 2025 is not the year for new AI regulations. US President Donald Trump’s dismantling of his predecessor’s AI safeguards has influenced global perspectives, with Europe opting to streamline its regulations rather than impose new ones. European Commission President Ursula von der Leyen is set to unveil a new AI strategy to simplify rules, deepen the single market, and boost computing investments.

German Chancellor Olaf Scholz urged the EU companies to unite in a collective push for ‘AI made in Europe,’ signalling a desire for regional self-reliance in the face of global competition. Meanwhile, tech executives, including OpenAI CEO Sam Altman, joined the summit’s Business Day, highlighting the private sector’s role in shaping AI’s future. A consortium led by Elon Musk reportedly offered $97.4 billion to acquire the nonprofit overseeing OpenAI, though details remain unconfirmed.

US Vice President JD Vance added another layer of intrigue as the summit progressed. While his primary focus was expected to be AI, reports suggested he might also address the Russia-Ukraine conflict, and this shift in agenda underscores the complex interplay between technology and geopolitics at the summit.

The draft declaration, which calls for avoiding market monopolies and ensuring AI benefits people and the planet, remains a point of contention. While many nations support its principles, the US delegation has not confirmed its stance, casting doubt on the universal adoption of the declaration. Consequently, without unanimous backing, the summit risks failing to establish a unified, sustainable framework for AI’s global development.

Nokia appoints Justin Hotard as new CEO

Nokia has announced that Pekka Lundmark will step down as CEO, with Justin Hotard, currently EVP and GM of Intel’s Data Center & AI Group, set to take over the role on April 1. This leadership change is seen as part of Nokia’s strategic shift towards expanding into areas like AI and data centres, where the company is positioning itself for future growth. Hotard’s strong background in AI and technology is expected to drive Nokia’s focus on these emerging sectors.

The news has led to a 1.6% rise in Nokia’s shares, reflecting positive investor sentiment despite the surprise announcement. Analysts note that the appointment of Hotard suggests Nokia’s commitment to strengthening its network infrastructure unit, particularly as it looks to benefit from the surge in AI investments. This follows Nokia’s $2.3 billion acquisition of US optical networking firm Infinera, aimed at tapping into the growing data centre market.

Lundmark, who has been CEO since 2020, will remain with Nokia as an advisor to Hotard until the end of the year. Despite some initial denials about leadership changes, the company confirmed that the transition plan had been in place for some time, with Lundmark signalling his intention to step down once the business repositioning was more advanced.

Nokia’s infrastructure business, which includes AI-integrated systems for communication, and its mobile networks division, focusing on 5G technology, are both seen as key to the company’s future. While shares are up 27.85% over the past year, they remain significantly lower than their peak in 2000.

EU AI regulations making it harder for global firms, Ezzat says

Aiman Ezzat, CEO of Capgemini, has criticised the European Union’s AI regulations, claiming they are overly restrictive and hinder the ability of global companies to deploy AI technology in the region. His comments come ahead of the AI Action summit in Paris and reflect increasing frustration from private sector players with EU laws. Ezzat highlighted the complexity of navigating different regulations across countries, especially in the absence of global AI standards, and argued that the EU’s AI Act hailed as the most comprehensive worldwide, could stifle innovation.

As one of Europe’s largest IT services firms, Capgemini works with major players like Microsoft, Google Cloud, and Amazon Web Services. The company is concerned about the implementation of AI regulations in various countries and how they affect business operations. Ezzat is hopeful that the AI summit will provide an opportunity for regulators and industry leaders to align on AI policies moving forward.

Despite the regulatory challenges, Ezzat spoke positively about DeepSeek, a Chinese AI firm gaining traction by offering cost-effective, open-source models that compete with US tech giants. However, he pointed out that while DeepSeek shares its models, it is not entirely open source, as there is limited access to the data used for training the models. Capgemini is in the early stages of exploring the use of DeepSeek’s technology with clients.

As concerns about AI’s impact on privacy grow, European data protection authorities have begun investigating AI companies, including DeepSeek, to ensure compliance with privacy laws. Ezzat’s comments underscore the ongoing tension between innovation and regulation in the rapidly evolving AI landscape.

France boosts AI industry with 109 billion euro investments

France is set to announce private sector investments totalling around 109 billion euros ($112.5 billion) in its AI sector at the Paris AI summit, according to President Emmanuel Macron. The investment package includes 20 billion euros from Canadian investment firm Brookfield and up to 50 billion euros from the United Arab Emirates, which will also fund a 1-gigawatt data centre.

Brookfield’s investment is expected to focus on developing data centre infrastructure, crucial for AI technology that requires massive amounts of energy to operate.With the demand for AI technology rising, Europe is aiming to secure necessary investments to meet the growing need for energy and infrastructure.

This comes amid global competition, as US President Donald Trump recently announced that companies like OpenAI, SoftBank, and Oracle would invest $500 billion in AI infrastructure over the next four years to ensure the US stays ahead in the global AI race.

Oracle expands AI tools in NetSuite to speed up business processes

Oracle has introduced new AI features to its NetSuite corporate finance software, aiming to streamline common business tasks. Unlike competitors focused on developing general-purpose AI assistants, Oracle is integrating targeted tools to automate tedious processes. One of the latest additions helps generate price quotes for complex purchases through chatbot-driven interactions, making it easier for businesses and consumers to configure products like customised bicycles.

The AI-powered quoting tool allows sales professionals to quickly compile prices based on customer requirements, reducing time spent on manual calculations. Oracle‘s approach focuses on enhancing efficiency rather than competing in the race to build massive AI models. Instead, the company partners with firms like Canadian startup Cohere to power its AI tools.

Oracle’s recent collaboration with OpenAI to build large data centres has raised speculation about further AI partnerships. While no formal announcements have been made, Oracle executives have indicated a willingness to work with OpenAI in the future. The company’s AI strategy prioritises practical applications that help businesses close deals faster and lower operational costs.

Meta partners with UNESCO to improve AI language technology

Meta has launched a new initiative with UNESCO to enhance AI language recognition and translation, focusing on underserved languages. The Language Technology Partner Program invites collaborators to provide speech recordings, transcriptions, and translated texts to help train AI models. The finalised models will be open-sourced, allowing broader accessibility and research.

The government of Nunavut in Canada is among the early partners, contributing recordings in Inuktut, a language spoken by some Indigenous communities. Meta is also releasing an open-source machine translation benchmark to evaluate AI performance across seven languages, available on Hugging Face.

While Meta presents the initiative as a philanthropic effort, improved AI language tools could benefit the company’s broader goals. Meta AI continues to expand multilingual support, including automatic translation for content creators. However, the company has faced criticism for its handling of non-English content, with reports highlighting inconsistencies in content moderation across languages.

Environmental groups urge AI industry to reduce emissions

More than 100 organisations, including Amnesty International and the AI Now Institute, have called on the AI industry and regulators to address the technology’s growing environmental impact. In an open letter published ahead of a major AI conference in Paris, the signatories highlight concerns over emissions, reliance on fossil fuels, and resource depletion caused by AI infrastructure.

The letter urges tech companies and governments to ensure that data centres operate without fossil fuels, warning that electricity demand from AI could double by 2026, reaching levels equivalent to Japan‘s annual consumption. The expansion of AI infrastructure is also straining water and land resources, with data centres requiring vast amounts of water for cooling and humidity control. Transparency on AI’s full environmental impact is another key demand.

Despite these warnings, the US government appears committed to AI expansion, with President Donald Trump pushing for faster approvals of new power stations, including those reliant on coal. The letter’s signatories stress that unchecked AI growth disproportionately affects communities most vulnerable to climate change and call for a shift towards responsible and sustainable AI development.

OpenAI’s Stargate project eyes US data centre locations

OpenAI announced on Thursday that it is evaluating US states as potential locations for data centres supporting its ambitious Stargate project, which aims to secure the US’s lead in the global AI race. The project is seen as crucial for ensuring that AI development remains democratic and open, rather than falling under authoritarian control, according to Chris Lehane, OpenAI’s chief global affairs officer.

Stargate, a venture backed by SoftBank, OpenAI, Oracle, and other investors, is set to receive up to $500 billion for AI infrastructure. A significant portion of this investment, $100 billion, will be deployed immediately, with the rest scheduled over the next few years. Texas has been designated as the flagship location for Stargate’s data centres. An initial site under construction in Abilene is expected to begin operations later this year.

The announcement follows the rise of DeepSeek, a Chinese AI model that challenges the traditional view that AI development requires large, specialised data centres. DeepSeek’s use of cheaper chips has raised concerns among investors, leading to a significant drop in tech stock values, including a record $593 billion loss for Nvidia, the leading AI chipmaker.

OpenAI is considering data centre locations in approximately 16 states, with plans to expand the Stargate network to five to ten campuses in the coming months.