European Tech Giants Call for AI Regulation Reevaluation Amid Global Competition Concerns

German tech giants Siemens and SAP have urged the European Union (EU) to rethink its artificial intelligence (AI) laws amid rising tensions with the United States. The CEOs of both companies, Roland Busch and Christian Klein, respectively, expressed concerns that current regulations would stifle innovation, hindering Europe’s ability to remain competitive in global technology development.

According to Busch, the EU’s AI Act hinders progress in the fast-moving field of AI. He criticized the Data Act as “toxic” for digital business model development, stating that it could paralyze innovation rather than promote it. The executives warned that failure to reform the regulatory framework would lead to increased reliance on American and Chinese technologies.

The tech leaders emphasized that Brussels must find a balance between safety and competitiveness when creating AI rules, emphasizing that empowerment of innovation is essential. They also stressed the need for Europe’s data centers, critical infrastructure for AI growth, to be incentivized by the government through long-term investment in such infrastructure.

These appeals come amid reports suggesting European firms are becoming increasingly hesitant to scale AI projects due to uncertainty and cost concerns. Meanwhile, American companies enjoy greater regulatory freedom, allowing them to innovate and deploy quickly.

Source: coincentral.com