Leading European corporations SAP and Siemens are calling for a fundamental overhaul of the European Union’s artificial intelligence (AI) legislation, expressing concerns that current regulations are hindering innovation rather than fostering it.
In a recent commentary published in the Frankfurter Allgemeine Zeitung (FAZ), Christian Klein, CEO of SAP and Roland Busch, CEO of Siemens, advocate for a revised framework that actively supports the development and deployment of AI technologies.
Busch specifically cited the European AI Act as a significant impediment to progress. He pointed out inherent contradictions and overlaps within the Act, alongside conflicts with existing regulatory frameworks. Adding to the concerns, Busch labelled the Data Act as “toxic” for the evolution of digital business models.
While he refrained from signing a recent letter sent to the EU Commission urging a moratorium on current AI regulations – stating it “did not go far enough” – Busch emphasised the need for substantial alterations to the existing legislative approach. He argued against pausing development only to reimplement stricter rules in the future.
SAP’s Klein cautioned against simply replicating the US strategy of focusing heavily on infrastructure and data centers. While acknowledging the rationale behind the US “Stargate” initiative, which seeks to support the development of large language models (LLMs), Klein argued that it doesn’t necessarily translate to an appropriate approach for Europe, asserting that lack of data center capacity hasn’t hindered SAP’s AI projects to date.
Siemens’ Busch echoed this sentiment, proposing a prioritization of data regulation reform “before” significant investments in data centers. He highlighted Europe’s untapped potential in data, suggesting that the current regulatory environment prevents its effective utilization. He warned against an inverted approach to development, emphasizing the need to unlock existing capabilities before pursuing substantial infrastructure expansion.