Major Corporations Caution EU AI Law’s Potential to Jeopardize European Competitiveness

Several major companies have expressed concerns about the European Union’s proposed AI regulations, warning that they could harm Europe’s competitiveness and technological sovereignty. The executives of more than 150 companies, including Siemens, Carrefour, Renault, and Airbus, have signed an open letter to EU lawmakers, raising “serious concerns” about the EU AI Act, the world’s first comprehensive AI rules. The letter argues that the proposed EU rules could push innovative companies and investors out of Europe because they would face high compliance costs and disproportionate liability risks.

The executives also warn that the regulation could lead to highly innovative companies moving their activities abroad and investors withdrawing their capital from European AI in general. The companies are calling for the formation of an EU regulatory body, comprised of industry experts, that can monitor how new laws are applied and take into account new technological advances.