EU Faces Backlash as Siemens and SAP Demand Urgent Overhaul of AI Regulations

Siemens CEO Roland Busch and SAP CEO Christian Klein have publicly urged the European Union to revise its artificial intelligence regulations. They argue that the current framework stifles innovation and prevents Europe from fully leveraging its valuable data resources.

Both executives underscore that Europe possesses a wealth of data, yet it lacks effective mechanisms to unleash its full potential. They warn that without reform, Europe risks falling behind global competitors in AI technology.

What are the main concerns Siemens and SAP have about EU AI rules?

The CEOs criticize overlapping and sometimes contradictory regulations within the EU AI Act and the upcoming Data Act. They believe these rules create heavy compliance burdens that hamper technological advancement.

Roland Busch noted that Europe’s challenge is not a lack of computing capacity but restrictive data regulations that limit resource release. Christian Klein echoed concerns about the negative impact on innovation and competitiveness.

Did you know?
The EU AI Act categorizes AI systems into four risk levels, ranging from minimal to unacceptable, aiming to protect fundamental rights while regulating technology use.

How do current data laws impact innovation in Europe?

The EU Data Act, effective September 2025, imposes strict requirements on data sharing and restricts cross-border data flows. Critics argue it favors European companies but creates barriers for innovation-driven sectors.

Key issues include potential fines up to €20 million or 4% of global turnover, mandatory data sharing that risks intellectual property, and government access to private data in exceptional cases. These factors contribute to industry unease.

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The risk categories defined by the EU AI Act.

The EU AI Act classifies AI systems into four risk categories: unacceptable, high, limited, and minimal risk. High-risk systems, such as those in healthcare and law enforcement, face stringent oversight.

Limited-risk systems, including generative AI and chatbots, must meet transparency standards. Minimal-risk applications like spam filters face few restrictions. However, Siemens and SAP argue the overall regulatory environment is too restrictive.

Industry leaders call for balance between safety and innovation.

While acknowledging the importance of ethical AI, Siemens and SAP stress that excessive regulation threatens Europe’s ability to compete globally. Busch declined to join calls for a moratorium on the rules, seeking instead fundamental reform.

The CEOs’ stance reflects growing industry sentiment that Europe must strike a better balance. Without urgent changes, the continent risks losing its technological edge in the rapidly evolving AI landscape.