A band of big European companies have urged the EU to delay enforcement of the new AI Act, citing unclear and complex rules that risk hindering innovation and competitiveness. They support regulation but request simplification.
In sum – what to know
Two-year hiatus – enterprises have called for a two-year delay to allow clearer implementation of EU AI rules.
Overly complex – they support the Act’s principles, it seems, but say the process is unready and overly complex.
Economic impact – the group warns rushed enforcement could hurt Europe’s global AI competitiveness.
Fifty-odd major enterprises in Europe have signed an open letter to Brussels to call for the European commission (EC) to ‘stop the clock’ on the new Artificial Intelligence (AI) Act, scheduled to come into force in the European Union (EU) in two phases, starting on August 2. The signatories include Airbus, BNP Paribas, Carrefour, Dassault Systèmes, Lufthansa, Mercedes-Benz, Philips, Siemens Energy, and TotalEnergies.
The EU AI Act sets a common regulatory and legal framework for the development and application of AI in the EU. It was proposed by the EC in April 2021 and passed in the European Parliament in May 2024. There is a good explanation of its rationale and implementation here. No telcos have put their names to the new document, which requests a two-year hiatus before the act comes into force, covering the implementation of rules around both general-purpose AI (scheduled from next month) and ‘high-risk’ AI (from August 2026).
The letter, with the subject line ‘Stop the Clock’, is addressed to EC president Ursula von der Leyen, executive vice-presidents Henna Virkkunen and Stéphane Séjourné, and commissioner Valdis Dombrovskis, responsible for implementing EU law. A full list of signatories is included at the bottom of this article. “We urge the Commission to propose a two-year ‘clock-stop’ on the AI Act before key obligations enter into force, in order to allow both for reasonable implementation by companies, and for further simplification of the new rules,” they write.
Virkkunen has said she will make a call on whether to pause the implementation by the end of August if standards and guidelines are not ready in time.
The group argues that Europe’s ability to lead in AI innovation and adoption is critical during a period of “unprecedented technological, economic, and geopolitical change”. At no point do they argue with the principles of the legislation; they acknowledge the EU’s “careful balance between regulation and innovation”. But they say that neither the regulation, nor those to be regulated, are ready, accusing the EC of setting out “unclear, overlapping, and increasingly complex EU regulations”.
The upshot is to put Europe’s AI ambitions “at risk”, they argue, and to “jeopardise not only the development of European champions, but also the ability of all industries to deploy AI at the scale required by global competition”.
The group goes on: “[A] postponement, coupled with a commitment to prioritise regulatory quality over speed, would send innovators and investors around the world a strong signal that Europe is serious about its simplification and competitiveness agenda… It would also create the room needed to develop an innovation-friendly implementation strategy and identify pragmatic avenues for regulatory simplification.”
As such, their position is effectively that AI regulation is important, and that even the proposals are correct, but that the mechanics are confused and complex. The attendant Code of Practice for general-purpose AI (GPAI) models, designed as a presumption of conformity to help providers comply with the act’s obligations, has not even been released yet, they observe.
They write: “We have developed detailed proposals and are ready to work hand in hand with the Commission. As representatives of European companies deeply committed to the European project and to the development of trustworthy, human-centric AI – which must, of course, be subject to simplified and practical regulation – we are convinced that Europe has a unique opportunity to lead in the global AI economy. That opportunity will only be realised if we act now and with determination and collaboration at its core…
“Like the industrial revolutions brought about by steam power or the internet, AI will redefine entire economic domains – from energy and manufacturing to life sciences and defense… Europe has important advantages: a strong industrial base, abundance of talent, world-class research, a culture of openness and collaboration and regulatory guardrails… We welcome recent discussions considering the need to postpone the enforcement of the AI Act as relevant guidelines and standards continue to be developed, and as various industries work together to find solutions that work for everyone.”
The full list of signatories (by employer) is as follows: Adyen, Airbus, Alan, Artemis Holding, ASML, Axa, Bitpanda, Black Forest Labs, BNP Paribas, Brainly, Cambrium, Carrefour, Celonis, Cradle, Dassault Systèmes, ElevenLabs, EthonAI, EU AI Champions, European AI Forum, Flix, German AI Association, German Startup Association, Kayrros, Langdock, Loft Orbital, Loh Group, Lufthansa, Mercedes-Benz, Mirakl, Mistral, OLX Group, Owkin, Parloa, Pelico, Personio, Philips, Picnic, Pigment, Prosus, Publicis, Ravensburger, Sana Labs, Siemens Energy, Skeleton Technologies, Spread AI, Supercell, Südzucker, TomTom, TotalEnergies, United Internet.
