ASML, Mistral urge EU to delay AI Act enforcement

Leading European companies, including ASML Holding NV, SAP SE, and Mistral AI, have urged the European Union to delay the enforcement of its AI act.

Over 110 organizations signed a letter to European Commission President Ursula von der Leyen, warning that the regulation might hinder AI innovation in Europe.

The letter calls for a postponement of rules concerning general-purpose AI models and high-risk AI systems.

Companies like Airbus SE, Mercedes-Benz Group AG, and Deutsche Lufthansa said the lack of finalized guidelines creates uncertainty, especially with the delayed code of practice for compliance.

The AI Act, passed in 2023, requires transparency in model training, respect for copyright laws, and stronger risk controls for advanced AI.

Companies that fail to comply could face fines of up to 7% of their annual sales.

🔗 Source: Bloomberg

🧠 Food for thought

1️⃣ EU’s AI Act is following the GDPR global influence pattern

The EU AI Act represents Europe’s second major attempt to set global technology standards, following the same strategy used with GDPR for data protection.

Multiple countries across Southeast Asia and other regions are waiting to observe the EU’s implementation before developing their own AI frameworks, showing the Act’s potential to become a global benchmark1.

Similar to how GDPR shaped data protection laws worldwide, the EU AI Act is already influencing global AI regulations, with countries like Thailand drafting AI-specific legislation inspired by the EU’s risk-based approach1.

The challenge for Europe is finding the right balance. Too stringent rules could push innovation elsewhere, while successful implementation could cement the EU’s role as a global tech regulator despite having few dominant AI companies of its own.

The business community’s pushback mirrors early GDPR implementation concerns, where practical compliance guidance lagged behind enforcement deadlines, creating uncertainty for companies trying to adapt.

2️⃣ Global regulatory fragmentation creates compliance challenges for multinational companies

Companies operating globally face increasingly complex compliance requirements as different regions develop divergent AI governance approaches.