CEOs Warn Current Laws Stifle Innovation
The chief executives of Siemens and SAP have called on the European Union to revise its artificial intelligence regulations, arguing that the current framework is hindering the region's capacity for technological innovation. Speaking to the Frankfurter Allgemeine Zeitung, Christian Klein (CEO of SAP) and Roland Busch (CEO of Siemens) emphasized that a new approach is necessary to support, rather than restrict, advancement in the AI sector[1].
Concerns with the EU’s AI Act
The
EU's AI Act, which became law in 2024, is designed to ensure AI systems are safe, transparent, and in line with fundamental rights by classifying applications into risk categories and imposing strict security and transparency requirements. However, Siemens’ Roland Busch criticized these requirements as a primary reason for Europe falling behind in the global technology race. He described the combination of the AI Act and the EU’s Data Act—which sets rules for the use of consumer and corporate data—as “toxic” for developing new digital business models[1].
Pressure for Reform over Delay
While several tech companies, including
Google owner Alphabet and
Facebook owner Meta, have recently called on Brussels to postpone enforcement of the current AI rules, Siemens chose not to join their letter, stating that their proposal did not go far enough to address the core issues[1][2].
Focus on Data Access, Not Just Infrastructure
Klein cautioned against simply emulating the U.S. approach—pouring resources into infrastructure and data centers—arguing that the main obstacle for Europe is not capacity, but access to and use of its extensive data resources. Busch echoed this, urging policymakers to reform data regulation to enable European companies to better leverage the wealth of data available on the continent[1].
- The CEOs argue the current regulations are too complex and overlapping, discouraging AI innovation.
- They urge prioritizing reforms to data usage laws before further investing in data center infrastructure.
- Both agree that for Europe to compete globally, it must free up data resources rather than just following the U.S. investment model.
The Road Ahead for European AI
With the EU AI Act’s strict compliance requirements and tiered risk categories now in place, European businesses and AI providers face increased scrutiny—and a growing need to implement robust compliance and governance frameworks. Despite the pushback from industry leaders, the EU remains committed to its regulatory timeline, with new obligations for large models rolling out in August 2025[1][2][3]. As discussions between policymakers and the tech industry continue, the path forward for AI innovation in Europe hinges on reconciling security and ethics with the need for agility and growth.
