By Susana Samhan
Lisbon (EFE).– Microsoft President Brad Smith believes there is no need for a law like the European Union’s Artificial Intelligence (AI) Act for tech companies to act responsibly.
Instead, he advocates greater collaboration between governments rather than imposing tariffs to support the tech industry.
Smith spoke with EFE during the Web Summit in Lisbon, one of the world’s most prominent technology events, at a time when the European Commission is reportedly considering delaying parts of the AI Act, approved in 2023 and implemented this year, due to pressure from the United States and major technology firms.
“It’s an interesting time. There’s been intense debate: some are saying, ‘Has Europe gone too far?’ while others are asking, ‘Is the US backing down too much?’” said Smith, stressing that a company like Microsoft understands the markets in which it operates.
“We understand the local culture and values,” he said. “We don’t need a law that gives us permission to do what we know is right.”
Following lobbying from Washington and Big Tech, the European Commission is weighing a delay to parts of the AI Act, including requirements for high-risk models and transparency rules for systems such as ChatGPT and Gemini.
Smith, also a Microsoft vice chair, underscored the importance of promoting freedom of expression while investing in the development, preservation, and accessibility of local cultures.
China and the Globalization of AI
The 10th edition of the Web Summit, being held this week, features the largest-ever participation of Chinese companies, something Smith attributes to the growing globalization of AI.
He downplayed concerns about China producing similar products at lower costs.
“One of the great advantages of European and American companies is the trust that consumers and businesses place in their products,” he said.
Smith added that another European advantage lies in the proximity of firms, particularly startups, to their markets, allowing them to design applications tailored to local needs.
“I don’t think all companies can do that on a global scale. There’s enormous room for that kind of innovation,” he said. “Like most successful companies, it all starts with understanding the customer.”
More Collaboration, Fewer Tariffs
Addressing geopolitical and economic tensions, including the US tariffs, Smith said trade barriers are not new, though this year they have taken on “a new dimension.”
“From our perspective, the more governments work together, the more agreements we’ll see being announced. That, I believe, is and will continue to be the best path forward for everyone,” he emphasized.
Smith described Microsoft’s mission as “clear”: to be a “source of digital stability and trust,” while safeguarding security and privacy.
For 2025, the company’s top priority is to strengthen its “European digital commitments” by taking concrete steps to reinforce “resilience, security, and privacy,” while also supporting European trade and cultural initiatives.
This year, Microsoft has also undergone layoffs, cutting about 3 percent of its workforce, an issue that, according to Smith, calls for “reflection.”
He explained that while some roles were eliminated, new ones were created in other areas.
“What we should do better in the future is to plan with a long-term perspective, identify the new skills needed for emerging jobs, help people develop those skills within their current roles, and support them if they choose to transition,” he said.
“What hasn’t been reported much about Microsoft this year is that many employees who lost one job applied for another within the company and got it,” Smith said. “We can and must do better, and I think that’s something every company in the business community should reflect on.” EFE
ssa-sk
