European tech giants urge EU to delay artificial intelligence act rollout

Dozens of major European firms warn that rushing the European Union´s new Artificial Intelligence rules could stifle innovation and harm competitiveness.

European powerhouses including ASML Holding NV, Airbus SE, and Mistral AI have petitioned the European Commission to postpone the implementation of the forthcoming artificial intelligence act for two years. Their core argument: the imminent rules put Europe´s ambitions in Artificial Intelligence at risk and threaten to undermine the continent´s position as a global innovation leader. The appeal, formalized in a letter to commission president Ursula von der Leyen, was co-signed by over 45 organizations, spanning industries from automotive and aerospace to finance and energy.

The group calls specifically for a deferral of regulations governing both general-purpose Artificial Intelligence models and high-risk Artificial Intelligence systems. According to the signatories, critical guidelines and standards needed for compliance—such as a detailed code of practice—remain undelivered by the commission, even as key portions of the act are due to take effect next month. Industry leaders argue that the code of practice, originally set for completion in May but now delayed, creates excessive and sometimes unclear obligations beyond the stipulations of the artificial intelligence act itself. The resulting confusion, they caution, could prompt stalled investments and slower innovation across Europe´s tech sector. Notably, the US government has also criticized the current approach, urging the EU to reconsider its draft code.

Under the AI Act, developers of advanced Artificial Intelligence systems will be required to disclose training methodologies, respect copyright rules, mitigate systemic risks, and adhere to new security and transparency protocols. Noncompliance can result in substantial penalties—up to 7% of global sales for some infractions. While the code of practice is technically voluntary, it is seen as essential for companies aiming to avoid regulatory breaches. Prominent technology firms, including Meta and Alphabet, have already voiced concerns about its feasibility and scope. The effort to delay implementation is coordinated by the EU AI Champions Initiative, led by US venture capital firm General Catalyst, highlighting both the pan-European and transatlantic stakes in how the bloc regulates Artificial Intelligence.

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