European Union: Implications of the US Executive Order on Artificial Intelligence for European Businesses

By neub9
4 Min Read

In Summary

President Biden issued the Executive Order on Artificial Intelligence (AI) on 30 October 2023, marking a significant legislative stride in AI regulation. This directive has profound implications for European businesses and the EU’s regulatory landscape on AI.


  1. Key Provisions of the Executive Order
  2. Impact on European Businesses
  3. EU Standards and Regulations: Responding to the US Directive
  4. Summary and Outlook

The Executive Order outlines a variety of measures to regulate and stimulate AI, with key points including:

  • Global Standards Development: Commitment to international collaboration in shaping global AI standards, fostering interoperability, and harmonizing practices.
  • Global AI Ecosystem Establishment: Recognition of AI’s interconnected development, promoting collaboration in AI research, development, and deployment between US entities and global partners.
  • Critical Infrastructure Standards: Emphasis on cooperative efforts for setting AI application standards in critical infrastructure, underscoring its global significance.
  • International Cooperation Acknowledgment: An explicit acknowledgment of the need for international collaboration in mitigating AI-related risks.
  • Red-Teaming and Risk Management: Introduction of stress-testing AI programs for safety, particularly in national security and public safety projects, indicating a commitment to rigorous evaluation and transparency.
  • Collaborative Opportunities: The executive order emphasizes fostering international collaboration to establish AI standards. European businesses should expect enhanced collaboration with US counterparts, particularly in AI research and development, shaping a unified AI ecosystem.
  • Labor Market Shifts: The executive order suggests a potential shift in the demand for AI-proficient personnel globally, influencing talent acquisition strategies and human resource planning in Europe.
  • Ethical AI Development Emphasis: Strong emphasis on AI safety, security, and ethical development with European businesses urged to align their practices with these principles, enhancing transparency, accountability, and user protection in their AI systems.
  • Setting an International Benchmark: The US Executive Order aligns with the EU’s emphasis on safe, transparent, and ethical AI practices, requiring European businesses to prepare for changing expectations and strive for high ethical standards in AI.
  • Addressing Human Rights and Discrimination: In line with the EU’s focus, the directive urges AI development to adhere to human rights principles and actively combat biases and discrimination.

The US Executive Order on AI significantly impacts European businesses. As the EU continues to refine its AI standards, European companies must stay abreast of global trends and collaborations while maintaining a strong commitment to ethical AI principles. Baker McKenzie is closely monitoring these developments and is poised to provide tailored guidance to ensure compliance with emerging AI regulations.

Anahita Thoms LL.M.

Anahita Thoms heads Baker McKenzie’s International Trade Practice in Germany and is a Member of our EMEA Steering Committee for Compliance & Investigations. Anahita has won various accolades for her work, including 100 Most Influential Women in German Business (manager magazine), International Trade Lawyer of the Year (Germany) at the 2020 ILO Client Choice Awards, and Young Global Leader of the World Economic Forum.

Dr. Alexander Ehrle LL.M.

Dr. Alexander Ehrle is a member of the Firm’s International Trade Practice in Baker McKenzie’s Berlin office. Alexander co-chairs the Business & Human Rights Committee of the American Bar Association’s International Law Section and has been recognized as one of 40 under 40 lawyers worldwide for foreign investment control by the Global Competition Review.

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