Siemens CEO Roland Busch and SAP CEO Christian Klein have urged the European Union to revise its AI legislation, arguing that current regulations hinder innovation.

In an interview with Frankfurter Allgemeine Zeitung, they stressed the need for a new regulatory framework that supports technological progress.

Busch criticized the EU’s AI Act for contributing to Europe falling behind in AI and pointed to overlapping regulations as major obstacles.

He called the EU’s Data Act “toxic” for digital business model development.

The two CEOs distanced themselves from a previous letter by companies like Alphabet and Meta, which called for a delay in implementing AI rules.

Busch said the proposals in that letter were not enough.

Instead, he and Klein emphasized that data regulations must be reformed before investing in infrastructure like data centers.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ The EU’s regulatory divergence from US creates competitive tension

The EU and US fundamentally differ in their approach to AI regulation, with the EU implementing comprehensive frameworks while the US maintains a more fragmented landscape focused on innovation 1.

This regulatory divide has real business implications. While the EU AI Act categorizes AI systems by risk levels with strict requirements for high-risk applications, US companies face fewer immediate constraints 2.

Several studies show this regulatory approach is creating market hesitation, with European technology CEOs like those from Siemens and SAP now publicly voicing concerns about innovation barriers that could widen the competitive gap with American firms.

The EU prioritizes preemptive protective frameworks, while the US often allows more market-led development until problems emerge, as evidenced by their contrasting approaches to data privacy 3.

Industry leaders from both regions acknowledge the common goals of preventing algorithmic bias and discrimination, but significantly disagree on implementation methods and timelines 4.

2️⃣ The data act creates substantial economic opportunity alongside compliance burden

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