Dozens of Europe's leading companies are urging the European Commission to pause its landmark Artificial Intelligence (AI) Act, citing concerns that overly complex regulations could hinder the region's ability to compete globally. A coalition of 44 major firms, including Airbus, ASML, and Mercedes-Benz, warned in an open letter that the current framework risks stifling innovation at a critical moment in the AI development race.
The letter, organized by the EU AI Champions Initiative, argues that overlapping rules and unclear requirements threaten Europe's position as a tech leader. 'The EU's approach jeopardizes not only AI champions but all industries needing scalable AI solutions,' the document states, emphasizing the urgency of aligning policy with technological advancement.
Implemented in August 2023 as the world's first comprehensive AI regulation, the act now faces scrutiny from industry leaders who propose a two-year regulatory pause. They advocate for a revised strategy that balances consumer protection with commercial viability, particularly as Asian and North American tech sectors accelerate AI deployment.
This development comes as global business professionals and policymakers increasingly watch regulatory approaches to emerging technologies. The outcome could influence investment patterns in Asia's thriving tech ecosystems, where governments have generally adopted more flexible innovation frameworks.
