Germany, France and Italy Reach Agreement on Future AI Regulation

FILE PHOTO: European Union (EU) flags fly in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski/File Photo
FILE PHOTO: European Union (EU) flags fly in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski/File Photo
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Germany, France and Italy Reach Agreement on Future AI Regulation

FILE PHOTO: European Union (EU) flags fly in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski/File Photo
FILE PHOTO: European Union (EU) flags fly in front of the headquarters of the European Central Bank (ECB) in Frankfurt, Germany, July 8, 2020. REUTERS/Ralph Orlowski/File Photo

France, Germany and Italy have reached an agreement on how artificial intelligence should be regulated, according to a joint paper seen by Reuters, which is expected to accelerate negotiations at the European level.
The three governments support commitments that are voluntary, but binding on small and large AI providers in the European Union that sign up to them.
The European Commission, the European Parliament and the EU Council are negotiating how the bloc should position itself.
In June, the European Parliament presented an "AI Act" designed to contain the risks of AI applications and avoid discriminatory effects, while harnessing the innovative power of AI.
During the discussions, the European Parliament proposed that the code of conduct should initially only be binding for major AI providers, which are primarily from the US.
The three EU governments have said this apparent competitive advantage for smaller European providers could have the drawback of reducing trust in them and of resulting in fewer customers.
The rules of conduct and transparency should therefore be binding for everyone, they said.
Initially, no sanctions should be imposed, according to the paper.
If violations of the code of conduct are identified after a certain period of time, however, a system of sanctions could be set up. In future, a European authority would monitor compliance with the standards, the paper said.
Germany's Economy Ministry, which is in charge of the topic together with the Ministry of Digital Affairs, said laws and state control should not regulate AI itself, but rather its application.
Digital Affairs Minister Volker Wissing told Reuters he was very pleased an agreement had been reached with France and Germany to limit only the use of AI.
"We need to regulate the applications and not the technology if we want to play in the top AI league worldwide," Wissing said.
State Secretary for Economic Affairs Franziska Brantner told Reuters it was crucial to harness the opportunities and limit the risks.
"We have developed a proposal that can ensure a balance between both objectives in a technological and legal terrain that has not yet been defined," Brantner said.
As governments around the world seek to capture the economic benefits of AI, Britain in November hosted its first AI safety summit.
The German government is hosting a digital summit in Jena, in the state of Thuringia, on Monday and Tuesday that will bring together representatives from politics, business and science.



Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
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Salesforce Gains as Software Firm Bets on AI Tools to Power Growth

The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights
The Salesforce logo is pictured on a building in San Francisco, California, US October 12, 2016. REUTERS/Lily Jamali/File Photo Purchase Licensing Rights

Shares of Salesforce gained more than 5% on Thursday as investors cheered the customer relationship management software maker's upbeat quarterly results and its artificial intelligence push to drive growth.

The company has been heavily investing to integrate its AI technologies into existing products, such as its messaging platform Slack, to enhance their capabilities and attract more customers.

"We continue to see Salesforce as an under-appreciated AI winner as its differentiated data and early success in creating/deploying GenAI agents," Reuters quoted Goldman Sachs analyst Kash Rangan as saying.

Wall Street was concerned that tempered cloud spending would affect Salesforce in a tough economy, but the software-as-a-service (SaaS) firm reported better-than-expected revenue, profit and margins in the second quarter.

Salesforce also raised its profit forecast for the year ending January 2025, as margins continue to expand, thanks to its restructuring efforts last year.

The stock is trading at 24.49 times that of Wall Street's profit expectations, compared with 52.11 for SaaS peer ServiceNow and cloud contact center firm Five9's 13.30.

Salesforce is set to add $14 billion to its market capitalization if premarket gains hold. The company's valuation stood at $248 billion as of Wednesday's close.

"We think these results alone are not good enough to drive a sustainable rally from here. For that, we need more catalysts, which could come with the new AI solutions," which are set to be showcased at its event Dreamforce and launched in October, Barclays analyst Raimo Lenschow said.

Some analysts believe that sustained growth in the coming quarters can come through customer support platform Agentforce, which is not yet commercially available.