Date : 14/07/2025 By: Dlightdaily(Author)
Two of Europe’s biggest tech giants – industrial leader Siemens and software powerhouse SAP – are sounding the alarm about the EU’s Artificial Intelligence Act (AI Act). In a bold move reported by Germany’s Frankfurter Allgemeine Zeitung (FAZ), these industry titans argue the regulations could backfire, stifling innovation while giving U.S. and Chinese firms an unfair advantage.
Why This Matters for Europe’s Tech Future
The EU’s landmark AI legislation, while well-intentioned, might be too rigid for industrial and business applications. Here’s what’s at stake:
- Industrial AI at Risk – The law’s “high-risk” classification could unfairly target manufacturing robots, smart logistics, and predictive maintenance tools – areas where Siemens and SAP dominate globally.
- Costly Compliance – Excessive audits and paperwork could slow down AI adoption in European factories, making them less efficient than competitors abroad.
- Brain Drain Threat – If rules are too strict, companies may move AI research and development to more flexible markets like the U.S. or Asia.
What Siemens & SAP Want Changed
The companies aren’t against regulation – they just want smarter rules that protect innovation. Their key proposals:
✔ Tiered Regulation – Lighter oversight for non-consumer AI (factory systems, business software) vs. high-risk areas like healthcare.
✔ AI “Sandbox” Testing – Allow real-world trials of industrial AI without full compliance burdens.
✔ Clearer Liability Rules – Protect businesses from legal risks when using AI for low-risk tasks.
Bigger Than Just Two Companies
Siemens and SAP’s concerns echo wider industry fears:
- German business groups (BDI, Bitkom) warn the AI Act could derail Industry 4.0 progress.
- With full enforcement coming in 2026, time is running out to fix flaws before Europe falls behind.
The Bottom Line
Europe wants to lead in ethical AI, but if regulations are too strict, it could lose the AI race entirely. Siemens and SAP’s pushback highlights a critical question: Can the EU balance safety and innovation before it’s too late?
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