Google Navigates EU AI Act and Legal Challenges in AI Mode Rollout
Google is navigating a complex landscape of regulations and legal challenges as it rolls out its AI globally. The tech giant is adapting to the EU AI Act, which came into force in August 2024, while facing demands to sell parts of its advertising business and clarify its AI's default status. Google is working to comply with the EU AI Act, which requires transparency, data protection, and ethical guidelines adherence. The company is developing proximity-based AI interaction for Pixel smartphones, subject to GDPR and AI Act regulations. National enforcement varies across the EU, with authorities like Ireland's Data Protection Commission overseeing major tech firms' AI activities. However, implementation challenges and adaptations to competition law like the Digital Markets Act (DMA) persist. In a legal battle, Google is resisting demands to sell its ad exchange AdX and disclose its central auction logic. The company argues that the web is in 'rapid decline', but later clarified this referred to 'display advertising in the open web'. Google's AI, set to become the new default search, is transforming Google into a closed content platform with AI as the central element. The URL google.com/ai now redirects to AI Mode, and Logan Kilpatrick hinted at its upcoming default status. However, product manager Robby Stein tempered this statement, suggesting AI Mode's rollout will be more gradual. AI Mode, currently available in over 180 countries outside the EU, offers agentic functions like ordering or booking local services. Behavioral rules and open interfaces aim to limit Google's market power and encourage competition. Google's AI Mode rollout continues globally, with the company navigating EU regulations and legal demands. While the default status of AI Mode remains uncertain, Google is working to make the new search experience accessible and competitive.
