Siemens May Shift AI Investment to USA and China Due to EU Regulations

Siemens has warned that it will limit its artificial intelligence investments to the United States and China if European Union regulations on AI continue to develop in their current form, citing concerns over legal uncertainty and compliance costs.

The statement was made by Roland Busch, CEO of Siemens AG, during a press briefing in Munich on April 5, 2026, where he addressed the company’s strategic response to the EU’s AI Act. Busch emphasized that while Siemens remains committed to innovation in AI, the evolving regulatory landscape in Europe is creating conditions that make long-term investment planning demanding.

“We are not withdrawing from Europe,” Busch said. “But when it comes to allocating capital for next-generation AI systems — particularly those tied to industrial automation, energy grids, and healthcare infrastructure — we must prioritize jurisdictions where rules are clear, stable, and predictable. Today, that means the U.S. And China.”

The Siemens CEO noted that the company has already redirected over €1.2 billion in planned AI-related R&D spending from European sites to facilities in Austin, Texas, and Shanghai since the beginning of 2025. This shift includes projects involving generative AI for predictive maintenance in manufacturing and AI-driven optimization of renewable energy networks.

Busch pointed to specific provisions in the EU AI Act that classify certain industrial AI applications as “high-risk,” triggering stringent requirements for documentation, human oversight, and third-party auditing. He argued that these rules, while intended to ensure safety and ethical use, disproportionately burden complex industrial systems where AI is embedded in physical infrastructure.

“In a factory or power plant, an AI system isn’t a standalone app — it’s part of a safety-critical chain,” Busch explained. “Applying the same compliance framework designed for social media algorithms or credit scoring to a turbine controller makes no technical sense and adds months — sometimes years — to deployment timelines.”

The Siemens chief contrasted this with regulatory approaches in the United States, where federal AI policy remains sector-specific and largely voluntary, and in China, where state-backed AI development is accelerated through centralized planning and direct funding. He noted that Siemens’ AI partnerships with NVIDIA and Microsoft in the U.S., and with Baidu and Huawei in China, have progressed without the procedural delays encountered in European pilot programs.

Industry analysts say Siemens’ warning reflects growing unease among European industrial giants about the competitiveness implications of the EU’s regulatory-first approach to AI. While Brussels maintains that the AI Act aims to foster trustworthy innovation, critics argue that its broad scope and rigid classification system risk pushing capital and talent abroad.

The European Commission has not yet responded publicly to Siemens’ remarks. A spokesperson for DG CONNECT, the Commission department overseeing digital policy, declined to comment on specific corporate statements but reiterated that the AI Act includes provisions for review and adjustment based on implementation experience.

Siemens has confirmed that its next quarterly earnings call, scheduled for July 25, 2026, will include a dedicated segment on regional investment allocation, where further details about AI spending priorities are expected to be disclosed.