Elon Musk on Tuesday urged the G20 to tread softly on regulating tech and Artificial Intelligence, saying European-style rules inhibit innovation.

Musk also made a defence of building data centres to meet the needs of the AI revolution, amid a growing backlash against their construction in the United States ahead of midterm elections later this year.

The Tesla and SpaceX chief was participating virtually in a tech-focused G20 meeting in North Carolina amid a global debate on how governments should address the dangers and promise of AI.

The Donald Trump administration is largely committed to a hands-off approach that would leave the industry to find ways to self-regulate, even as companies race furiously to stay ahead in AI despite the risks.

In a sign that his administration is loath to create any obstacle for the AI industry, President Trump on Monday attacked opponents of AI data centres, saying they would end up “backwards and poor” and were helping rival China.