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July 14.2025
3 Minutes Read

Siemens and SAP CEOs Push for Revisions to European AI Law to Boost Innovation

AI symbol with EU stars, representing European AI Law Revisions, on digital backdrop.

Is the EU AI Act Stifling Innovation?

The CEO's of Siemens and SAP have sparked intense discussions regarding the European Union's AI Act, arguing that it hampers innovation and places Europe at a competitive disadvantage. In their recent conversation with Frankfurter Allgemeine Zeitung, both leaders criticized the existing regulations, urging for a revised framework that fosters technological advancement. They are not alone; 46 other CEOs have previously called for a two-year delay on the enforcement of the AI Act.

The Aim of the AI Act vs. The Reality of Innovation

The EU AI Act aims to create a solid foundation for AI systems ensuring they are safe, transparent, and ethical. However, leaders like Siemens’ Roland Busch argue that stringent compliance requirements discourage companies from utilizing abundant data available in Europe. As he stated, "We have a treasure of data in Europe, but we cannot use it effectively." This presents a critical paradox for European companies, who are increasingly wary of falling behind their counterparts in the United States, where regulations appear less constraining.

Unique Challenges Faced by European Companies

The concerns raised extend beyond the AI Act. Busch described the Data Act as "toxic" for digital business development—imposing stringent data handling requirements that further complicate innovation pathways. SAP's CEO, Christian Klein, cautioned against simply mirroring the American model. Instead, he urged a focus on adapting the regulatory environment to better serve European innovation while ensuring data protection.

A Glimpse into the Future of European Tech

The debate on the AI Act raises questions about Europe’s long-term technological ambitions. As looming deadlines inch closer, with the first obligations for general-purpose AI models set to start in August, the pressure to reform data protection laws increases. Can the EU recalibrate its approach to create a more favorable climate for innovation? The outcome of these discussions could ultimately determine whether Europe can reclaim its competitive edge in the global tech arena.

Efficiency vs. Innovation: A Balancing Act

As both CEOs pointed out, while building infrastructure such as data centers is crucial, it should not be the primary focus. Instead, reforming data laws appears essential before committing further resources. This insight prompts an important question: how can European leaders find the right balance between establishing necessary regulations and promoting an innovative landscape that encourages comprehensive data utilization?

What Can European Entrepreneurs Do?

For entrepreneurs navigating these uncertain waters, understanding the intricacies of the AI Act and the Data Act becomes paramount. By staying informed and actively participating in dialogues surrounding regulatory changes, they can advocate for a better regulatory environment. Engaging in communities and forums dedicated to these topics not only builds awareness but can also influence lawmakers to reconsider current regulations.

Ultimately, the success of Europe's tech ecosystem hinges on its ability to adapt and evolve with the rapidly changing technological landscape. As the conversation surrounding the AI Act continues, the spotlight is now on policymakers to lead the charge towards a more innovation-friendly Europe.

Medisch & Zorg

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