European CEOs Urge Suspension of AI Act, Citing Competition Concerns

Executives from Airbus, BNP Paribas, and other leading European corporations have called on Brussels to pause implementation of its new artificial intelligence legislation, warning it could hinder the bloc's competitiveness against the U.S. and China. In a letter to EU Commission President Ursula von der Leyen, the CEOs requested a two-year delay for the AI Act, arguing that overlapping and ambiguous regulations could stifle investment and slow AI development across Europe.

The signatories, including leaders from Carrefour and Philips, asserted that Europe's complex regulatory framework "risks undermining the continent's AI ambitions by jeopardizing both the growth of European tech leaders and all industries' capacity to deploy AI at globally competitive scales." The appeal comes amid mounting pressure from U.S. officials, tech giants, and European business groups.

EU officials recently met with senior U.S. tech representatives to review a softened draft of the legislation, focusing particularly on a forthcoming "code of practice" for compliance with AI systems like Meta's Llama and OpenAI's GPT-4. Originally due in May, this guidance has been delayed and is expected in a diluted form before the Act's August implementation, according to EU Technology Commissioner Henna Virkkunen.

The European AI Champions Initiative, representing 110 cross-sector companies, organized the letter, suggesting a pause would demonstrate Europe's commitment to regulatory simplification and competitiveness. Over 30 EU startups separately warned the legislation represents "a rushed ticking time bomb," fearing fragmented national regulations would disadvantage local firms against well-funded U.S. competitors.

The EU Commission maintains it remains committed to the AI Act's core objectives of establishing harmonized, risk-based rules while ensuring AI system safety, noting broader efforts to streamline digital regulations. Meanwhile, legal experts criticize the phased implementation timeline as creating regulatory uncertainty that disadvantages European businesses.