Europe’s AI regulatory framework, teh AI Act, is hindering technological innovation, according to Siemens CEO Roland Busch. While the AI Act aims to ensure safety, transparency, and basic rights in AI systems, Busch argues it contributes to Europe’s lag in technological advancement compared to other global regions.
Busch criticized the complexity and contradictions within current European regulations, notably the Data Act, stating they impede technological progress. He described these regulations as “toxic” for the progress of new digital business models and declined to sign a letter to Brussels from other tech giants,believing their proposed legislative changes where insufficient.
In October 2024, a review of major tech companies’ compliance with the AI Act, including Alibaba, OpenAI, and Meta, revealed significant challenges in meeting European requirements.
SAP CEO Christian Klein cautioned against merely replicating the US model, wich prioritizes infrastructure and data centers. He asserted that outdated rules preventing data access, rather than infrastructure, are the primary barrier in Europe. Both executives advocate for data rule reforms before ample investments in data centers are made. Busch highlighted Europe’s untapped “goldmine of data” and the critical need to unlock its potential for innovation.
