CEOs Oppose EU AI Act

European CEOs, including those from Airbus and BNP Paribas, are lobbying against the EU's landmark AI Act, raising concerns about its potential to stifle innovation and hinder Europe's competitiveness in the global AI race. The Act, which came into force in June 2024, is undergoing a staggered implementation, with key provisions set to take effect in August 2025. However, the absence of a finalised Code of Practice for General-Purpose AI (GPAI) models has triggered worries about regulatory uncertainty and the potential for fragmented interpretations across member states.

Critics argue that the rushed rollout of the AI Act, without clear implementation guidelines, could put European businesses at a disadvantage compared to their counterparts in the United States and China. They also suggest that the cost of compliance may disproportionately affect startups, potentially driving them to relocate or discouraging investment in European AI ventures. Some, like Swedish Prime Minister Ulf Kristersson, have called for a pause to the Act's implementation, emphasising the need for a workable plan that reinforces Europe's credibility and competitiveness.

Tech industry leaders are advocating for a temporary halt to ensure the AI Act is properly calibrated to avoid stifling innovation. They stress the importance of a stable and predictable regulatory environment to foster AI development and attract investment. Concerns have also been raised that without a pause, innovation could be stalled altogether, as many European firms are uncertain about their compliance obligations.