EU Tech Chief Calls for Voluntary AI Code of Conduct Within Months 

European Commission Executive Vice President Margrethe Vestager speaks to the press at the EU-US Trade and Technology Council (TTC) meeting in the Kulturens hus in Lulea, Sweden, on May 31, 2023. (AFP)
European Commission Executive Vice President Margrethe Vestager speaks to the press at the EU-US Trade and Technology Council (TTC) meeting in the Kulturens hus in Lulea, Sweden, on May 31, 2023. (AFP)
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EU Tech Chief Calls for Voluntary AI Code of Conduct Within Months 

European Commission Executive Vice President Margrethe Vestager speaks to the press at the EU-US Trade and Technology Council (TTC) meeting in the Kulturens hus in Lulea, Sweden, on May 31, 2023. (AFP)
European Commission Executive Vice President Margrethe Vestager speaks to the press at the EU-US Trade and Technology Council (TTC) meeting in the Kulturens hus in Lulea, Sweden, on May 31, 2023. (AFP)

The United States and European Union should push the artificial intelligence (AI) industry to adopt a voluntary code of conduct within months to provide safeguards while new laws are developed, EU tech chief Margrethe Vestager said on Wednesday.

The European Union's AI Act, with rules on facial recognition and biometric surveillance, could be the world's first comprehensive legislation governing the technology, but is still going through the legislative process.

"In the best of cases it will take effect in two and a half to three years’ time. That is obviously way too late," Vestager told reporters before a meeting of the joint EU-U.S Trade and Technology Council in Sweden. "We need to act now."

EU industry chief Thierry Breton said last week that Alphabet and the European Commission aimed to develop an AI pact as concerns mount about the impact on society particularly from generative AI, like ChapGPT, that create content.

Leaders of the G7 nations called earlier this month for the development of technical standards to keep AI "trustworthy", urging international discussions on topics such as governance, copyrights, transparency and the threat of disinformation

Vestager said there needed to be agreement on specifics, not just general statements, suggesting the European Union and the United States could help drive the process.

"If the two of us take the lead with close friends, I think we can push something that will make us all much more comfortable with the fact that generative AI is now in the world and is developing at amazing speeds," she said.

Vestager, a European Commission vice president, said a code of conduct come emerge quickly while governments and legislators from the EU to Canada to India establish rules.

"That is the kind of speed you need, to discuss in the coming weeks, a few months, and of course also involve industry ... in order for society to trust what is ongoing," she said.



Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
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Google-parent Alphabet Earnings Shine with Help of AI

Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP
Google parent company Alphabet's cloud computing business is on pace to bring in $50 billion over the course of 2025, according to the tech giant. Manaure Quintero / AFP

Google-parent Alphabet on Wednesday reported quarterly profits that topped expectations, saying artificial intelligence has boosted every part of its business.

Alphabet's second-quarter profit of $28.2 billion -- on $96.4 billion in revenue -- came with word that the tech giant will spend $10 billion more than it previously planned this year on capital expenditures, as it invests to meet growing demand for cloud services.

"We had a standout quarter, with robust growth across the company," said Alphabet chief executive Sundar Pichai.

"AI is positively impacting every part of the business, driving strong momentum."

Revenue from search grew double digits in the quarter, with features such as AI Overviews and the recently launched AI mode "performing well," according to Pichai.

Ad revenue at YouTube continues to grow along with the video platform's subscription services, Alphabet reported.

Alphabet's cloud computing business is on pace to bring in $50 billion over the course of the year, according to the company.

"With this strong and growing demand for our cloud products and services, we are increasing our investment in capital expenditures in 2025 to approximately $85 billion and are excited by the opportunity ahead," Pichai said.

Alphabet shares were up nearly 2 percent in after-market trades that followed the release of the earnings figures.

Investors have been watching closely to see whether the tech giant may be pouring too much money into artificial intelligence and whether AI-generated summaries of search results will translate into fewer opportunities to serve up money-making ads.

The internet giant is dabbling with ads in its new AI Mode for online search, a strategic move to fend off competition from ChatGPT while adapting its advertising business for an AI age.

The integration of advertising has been a key question accompanying the rise of generative AI chatbots, which have largely avoided interrupting the user experience with marketing messages.

However, advertising remains Google's financial bedrock.

"Google is doing well despite tariff headwinds and rising AI competition in search," said eMarketer principal analyst Yory Wurmser.

"It's also successfully monetizing AI Overviews and AI Mode, a good sign for the future."

Google and rivals are spending billions of dollars on data centers and more for AI, while the rise of lower-cost model DeepSeek from China raises questions about how much needs to be spent.

Antitrust battles

Meanwhile the online ad business that generates the cash Google invests in its future could be neutered due to a defeat in a US antitrust case.

During the summer of 2024, Google was found guilty of illegal practices to establish and maintain its monopoly in online search by a federal judge in Washington.

The Justice Department is now demanding remedies that could transform the digital landscape: Google's divestiture from its Chrome browser and a ban on entering exclusivity agreements with smartphone manufacturers to install the search engine by default.

District Judge Amit Mehta is considering "remedies" in a decision expected in the coming days or weeks.

In another legal battle, a different US judge ruled this year that Google wielded monopoly power in the online ad technology market, another legal blow that could rattle the tech giant's revenue engine.

District Court Judge Leonie Brinkema ruled that Google built an illegal monopoly over ad software and tools used by publishers.

Combined, the courtroom defeats have the potential to leave Google split up and its influence curbed.

Google said it is appealing both rulings.