Google backs EU’s AI code despite concerns over innovation risks

Google has said it will adopt the EU’s voluntary code of practice for general-purpose AI, despite expressing concerns that the AI Act and accompanying code could hinder Europe’s progress in developing and deploying AI technologies.

The code of practice is a voluntary framework designed to guide AI developers in setting up processes and systems that support compliance with the AI Act. The Act’s rules for General Purpose AI models, deemed to carry systemic risk, will come into force on August 2.

Tech firms, including OpenAI, Google, Meta, and Anthropic, are expected to fall under the scope of the rules, which give affected companies a two-year window to achieve full compliance with the AI Act.

Many in the industry have been increasingly apprehensive about the potential impact of the EU’s AI rules, raising concerns over compliance costs, operational hurdles, and possible constraints on innovation.

“We remain concerned that the AI Act and Code risk slowing Europe’s development and deployment of AI,” Kent Walker, president of global affairs at Google, wrote in a blog post. “In particular, departures from EU copyright law, steps that slow approvals, or requirements that expose trade secrets could chill European model development and deployment, harming Europe’s competitiveness.”

Earlier this month, Meta said it would not endorse the code, criticizing the bloc’s regulatory efforts as excessive and warning that the region was taking a misguided approach to overseeing AI.

New AI compliance era

Google’s decision to adopt the code could offer its customers greater clarity on data handling, safety measures, and transparency requirements, particularly when operating across international markets.

“While it may require some adjustments in how AI is deployed or integrated, it also provides greater confidence that the tools being used are built with ethical and regulatory standards in mind,” said Tulika Sheel, senior VP at Kadence International. “Over time, this can help build more trust with customers, partners, and regulators, both in the US and globally. For enterprise users, it’s a signal that aligning with responsible AI practices isn’t just about compliance but becoming a key part of staying competitive and future-ready.”

Google’s move may also reshape the competitive environment by raising the bar for responsible AI development.

As more firms align with the framework, pressure is expected to grow around transparency, fairness, and data accountability, particularly in regions with strong regulatory or ethical standards.

“This decision is likely to put added pressure on other providers, such as Meta and Anthropic, to align with similar standards — as both businesses and consumers grow more discerning about the AI platforms they rely on,” Sheel added. “Over time, companies that demonstrate greater openness and accountability in their AI development are likely to gain a competitive advantage, earning stronger reputations and deeper customer trust.”

Compliance challenges

The new rules set stricter requirements for transparency, accountability, and risk management, particularly for major AI developers.

For firms like Google, the challenge goes beyond meeting compliance deadlines. It involves building long-term processes to ensure their AI systems remain safe, reliable, and aligned with regulatory expectations as they evolve.

“One key difficulty is the scale at which these systems operate,” Sheel said. “Explaining how large AI models work, ensuring the data they’re trained on is appropriate, and regularly monitoring their impact are all complex tasks that require major internal alignment across teams.”

That said, companies like Google are better positioned than many to handle the new requirements, Sheel said. The tech giant has invested significantly in responsible AI practices and has the resources to adapt within the two-year compliance period.