Microsoft is expected to formally adopt the European Union’s voluntary code of practice for artificial intelligence, marking a crucial move toward alignment with the EU’s AI Act, which went into effect in June 2024. Developed by a panel of 13 independent experts, the code aims to help companies navigate the regulatory environment by promoting transparency and adherence to strict standards. Key mandates include publishing summaries of training data used in AI development and implementing policies compliant with EU copyright laws. Microsoft’s President, Brad Smith, expressed the company’s anticipated participation and praised the constructive collaboration between industry leaders and the EU’s AI Office during the code’s formulation. This code responds to the comprehensive AI Act, the first global framework setting clear provisions on risk management, data governance, transparency, and accountability to foster trustworthy AI. The voluntary code supplements the regulation by providing practical guidance to companies on integrating ethical standards and intellectual property rights into their AI development pipelines. However, not all major tech players have embraced the initiative. Meta Platforms, the parent company of Facebook, Instagram, and WhatsApp, has rejected the code due to concerns over legal uncertainties and requirements they view as exceeding the AI Act's scope. Joel Kaplan, Meta’s Global Affairs Chief, echoed apprehensions shared by 45 European businesses, warning that the code could impose excessive restrictions that hinder innovation and slow AI progress in Europe. Meta’s opposition highlights ongoing debates about balancing AI regulation with technological advancement.

Critics argue that tight regulations risk disadvantaging Europe in a fast-moving global AI race, while proponents emphasize the necessity of strong oversight to ensure AI is developed ethically and respects fundamental rights. Meanwhile, other leading AI firms like OpenAI, known for its advances in language models, and the startup Mistral have embraced the voluntary code. Its non-binding nature lets companies showcase commitment to ethical AI practices while adapting to evolving rules. The code currently applies to major tech companies including Alphabet, Meta, Anthropic, and others in the AI ecosystem. Its adoption represents an industry-wide push to standardize responsible AI development across jurisdictions. This cooperation between the EU and experts reflects a shared understanding that sustainable AI growth requires balancing innovation and competition with societal safeguards. In summary, Microsoft’s likely endorsement of the EU’s voluntary AI code reflects its dedication to regulatory compliance and ethical AI. In contrast, Meta’s rejection reveals tensions within the industry over regulatory reach and innovation impact. As AI technology advances rapidly, ongoing dialogue between regulators and the tech sector remains vital to shape a future where AI serves the public good without stifling technological dynamism. The voluntary code stands as a key element in this evolving framework, offering companies a path to align with the EU’s ambitious standards and contribute to global responsible AI governance.