EU AI Act Faces Delay Request From Major Firms
A group of prominent European corporations are urging the European Union to postpone the implementation of the AI Act. The request comes as the EU reconsiders crucial elements of the law, which is scheduled to take effect in August 2025.
Open Letter to the Commission
An open letter to European Commission President Ursula von der Leyen, signed by the heads of 44 leading European companies, asks for the AI Act to be delayed by two years, according to The Financial Times.
Among the signatories are chief executives from major players such as Airbus, Carrefour, Philips, and BNP Paribas.
The executives contend that the existing regulatory framework, characterized by intricate and overlapping regulations, endangers Europe’s competitive edge in the worldwide AI arena.
The letter cautions that these regulations may impede the advancement of European AI leaders and industries’ capacity to implement AI technology efficiently.
Concerns Over Strict Regulations
The AI Act, recognized as one of the world’s most stringent AI regulatory frameworks, has drawn criticism from European businesses, the US government, and major tech companies alike. As Statista reports, 56% of Europeans express concern that AI will steal their jobs (Statista 2024).
Ongoing discussions involve establishing a ‘code of practice’
to guide AI companies in complying with the Act. This code will impact advanced AI models like Google’s Gemini, Meta’s Llama, and OpenAI’s GPT-4.
The code’s release, originally planned for May 2025, has been pushed back, suggesting a potentially more lenient strategy.
Earlier in July 2025, EU technology chief Henna Virkkunen stated that the commission is finalizing the code of practice in preparation for the August 2025 deadline. “We will publish the code of practice before that to support our industry and SMEs to comply with our AI Act,”
she was quoted by FT as saying.
Implementation Timeline
European Commission officials and member states are currently in talks to simplify the AI Act’s complex timeline. While the legislation took effect last August, many of its provisions are scheduled for implementation in the coming years.
The EU AI Champions Initiative, representing 110 companies across various sectors, organized the letter from European CEOs.
Separately, over 30 European AI startup founders and investors denounced the legislation as ‘a rushed ticking time bomb’
in another letter.
Their concerns revolve around the ambiguity in regulating general-purpose AI models. They fear that inconsistent rules across member states could favor well-funded US tech giants over smaller local businesses.