Good morning. Advances in artificial intelligence this year have rocked the tech industry, triggering calls from politicians, consumer groups and AI executives themselves for rules governing how to use the technology. Those regulations are now taking shape, at least in the European Union.

The EU parliament voted Wednesday to push forward draft legislation, called the AI Act, that is positioned to be the West’s first comprehensive set of AI regulations.

• What it includes: The draft rules include bans on real-time, remote biometric surveillance in public spaces and would prohibit harvesting surveillance footage or scraping the internet in developing facial-recognition databases. The parliament’s version also seeks a ban on so-called predictive policing systems, which analyze prior criminal behavior and other data and try to predict future illegal activity.
   
• Other requirements: More broadly, the draft legislation aims to regulate how companies train AI models with large data sets. It would, in some cases, require companies to disclose when content is generated using AI. Under the rules, companies would also need to design their AI models in a way that prevents them from creating illegal content.
   
• Potential penalties: Current drafts of the bill would impose fines of up to 6% or 7% of a company’s global revenue in certain cases of noncompliance.
   
• Mixed response from tech industry: Tech companies and their lobbyists argue that any government-enforced rules should focus on specific AI applications—and not put too many restrictions on how AI is developed, as is being proposed in Europe. They say such an approach would impede innovation. But some tech researchers have joined academics and technologists in expressing support for rules like those being formulated in the EU.

EU says it might seek breakup of Google’s ad-tech business.

Europe’s top antitrust regulator said it might seek the breakup of Google’s ad-tech business as it charged the tech giant with abusing its dominance of the online advertising technology industry.

The move Wednesday means Europe is joining the U.S.’s antitrust assault on Google’s ad-tech business, potentially setting up a protracted battle that could shake up the broader business of buying and selling ads across websites and apps.

• The communications chief of the China-led Asian Infrastructure Investment Bank said on Wednesday that he has resigned, accusing the bank’s management of being “dominated by the Communist Party,” allegations the bank called “baseless.”
   
• Attorney General Merrick Garland defended special counsel Jack Smith in his first public comments since the unprecedented federal indictment of former President Donald Trump, who has lashed out at prosecutors and called himself the victim of a political prosecution.

China’s foreign minister tells Blinken it’s up to the U.S. to ease tensions.

China’s foreign minister put the onus on the U.S. to improve ties between the two global powers in a phone call with Secretary of State Antony Blinken, ahead of the top U.S. diplomat’s much-anticipated visit to Beijing.

China's perspective. “The relationship between China and the U.S. has encountered new difficulties and challenges since the beginning of the year,” Qin Gang said to Blinken, according to a brief account of the call posted on the Chinese Foreign Ministry’s website on Wednesday. “It’s clear where the responsibility lies.”

U.S. responds. State Department spokesman Matthew Miller offered a similarly concise summary of the call, saying Blinken used it to stress the “importance of maintaining open lines of communication” between Beijing and Washington to avoid miscalculation and conflict.

Risk professionals out of loop in early project planning.

Risk professionals aren't getting looped in early in the planning of major projects, a new survey from PwC shows. About half of risk professionals surveyed reported being involved in the initial strategy or design phases of any given project, and 9% said they were included from the start across all major initiatives. "Risk professionals are wielding increasing influence, though not consistently," the report said.

The PwC report is based on a survey, conducted between March 9 and April 3, of 308 risk professionals from U.S. companies with revenue exceeding $1 billion.

• Federal Reserve officials agreed to hold interest rates steady after 10 consecutive increases, but signaled they are leaning toward raising them next month if the economy and inflation don’t cool more.
   
• President Vladimir Putin will attempt to present Russia as primed for investment despite economic erosion from more than a year of war and sanctions, as he addresses some of the Kremlin’s remaining allies this week at the country’s annual economic conference.
   
• The Biden administration has quietly restarted talks with Iran in a bid to win the release of American prisoners held by Tehran and curb the country’s growing nuclear program, people close to the discussions said.

• Once considered natural political allies, the Republican Party and big business are drifting apart. One sign of their estrangement: GOP lawmakers are weaning themselves off money from corporate political-action committees.
   
• President Biden is expected to be endorsed by the AFL-CIO this week ahead of a Saturday union rally in Philadelphia, according to people familiar with the process.
   
• Uber has been outmaneuvered in one of the world’s largest taxi markets by the man known as Japan’s taxi prince.
   
• Call it Bey-flation: Sweden’s higher-than-expected inflation in May was due in part to Beyoncé launching her Renaissance World Tour in Stockholm, according to an economist at Danske Bank.
   
• The front-runner to be the next chief of the North Atlantic Treaty Organization will face opposition from Poland, European officials said.
   
• Nearly three dozen U.S. senators wrote a letter to Wall Street Journal reporter Evan Gershkovich, expressing their “profound anger and concern” over his detention by the Russian government.

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