Karsten Wenzlaff, Advisor
August 26th, 2025
Karsten Wenzlaff is a Crowdfunding and Fintech Expert from Germany. He is Secretary-General of Digit[...]
Google Signs EU AI Code Despite Competition Warnings
AI Governance | July 31, 2025
Image: Freepik/rawpixel.com
Google Agrees to EU AI Code of Practice. Issuing Warnings that Rules May Slow Innovation
On July 30, 2025, Google confirmed in a blog post by Kent Walker that it will sign the European Union’s new voluntary code of practice for general purpose AI models. The code supports compliance and is designed to help AI developers comply with the EU’s AI Act, which comes into force on August 2, and aims to set standards for transparency, copyright and safety
See: UK-Google Deal Raises DPI Red Flags for Canada
Kent Walker, President of Global Affairs and Chief Legal Officer, Google:
"[Google is signing] with the hope that this code, as applied, will promote European citizens’ and businesses’ access to secure, first rate AI tools as they become available”.
Google Warns of Risks to Competitiveness
Walker also warned that although the code was improved, the AI Act and code could slow Europe’s development and deployment of AI. He cited divergences from EU copyright law, approval delays and requirements that could expose trade secrets that risk hurting AI innovation and Europe’s ability to compete globally.
What the EU Code of Practice Requires
The European Commission describes the general purpose AI code of practice as covering three areas. The first is transparency, including detailed documentation on how models are built and trained. The second addresses copyright compliance, requiring developers to respect intellectual property and to put in place policies and contact points to handle complaints. The third focuses on safety and security for advanced models that create systemic risks, requiring external audits, risk frameworks and incident reporting.
See: Google’s Ad Tech Monopoly Ruled Illegal by U.S. Court
Signing the code gives a company a presumed conformity with the AI Act, which will apply to new models from August 2, 2025 while some models already in use will have until 2027 to comply.
How Other Tech Giants Are Reacting
Google isn't the only global tech company committing to sign the code. Microsoft president Brad Smith has already stated that Microsoft intends to sign. Other companies that have agreed include OpenAI, Anthropic and Mistral AI. Elon Musk’s company xAI has chosen to sign only the safety and security chapter of the code. Meta Platforms has declined to join because of legal uncertainties for developers, as reported by The Verge.
How Canada’s Voluntary AI Code Compares
Canada has its own voluntary code of conduct for advanced generative AI which was launched in September 2023. The Canadian code is an interim framework built around six principles of responsible AI: accountability, safety, fairness, transparency, human oversight and robustness. It is designed to guide Canadian companies ahead of the Artificial Intelligence and Data Act as it is still making its way through Parliament. The difference is that Canada’s code is advisory and is aimed predominantly at domestic companies. As of mid 2025, signatories include Canadian companies such as CGI, IBM Canada, TELUS Digital, Mastercard Canada and Cohere.
Major global technology firms like Google, Microsoft, Meta and OpenAI have not signed Canada’s code. By contrast, the EU's AI practice code is tied directly to the legally binding AI Act and offers a presumption of compliance that is attractive to companies serving the European market.
Why This Matters for Canada and Fintech
For Canadian fintechs and investors, the contrast between the European and Canadian approaches matters. Europe’s model ties clear rules to market access, while Canada’s model is currently voluntary and focused on domestic adoption.
See: New AI Minister Prioritizes Growth Over Rules
How these approaches evolve will determine how AI tools are built, funded and deployed across borders. As Canadian firms expand internationally, aligning with these new standards will increasingly become a requirement for competing in markets where AI compliance is a condition for trust and growth.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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