CEO of Europe’s largest engineering company warns European Commission on AI regulation; says: It would be a disaster if you …
Siemens CEO Roland Busch has an artificial intelligence (AI) warning for Europe. The chief executive of Europe’s largest engineering company has cautioned the European Commission against slowing down the adoption of AI tools developed by American companies in pursuit of building sovereign infrastructure. He thinks that such an approach could harm innovation. Speaking amid ongoing EU discussions on reducing reliance on American technology providers, Busch told the Financial Times that prioritising local AI systems over deploying existing tools could delay progress. “It would be a disaster” if Europe holds back innovation while waiting to build its own infrastructure, Busch said. “You should not throttle your innovation speed for the sake of creating sovereignty,” he added. Busch also cautioned that the region risks falling further behind in AI development if regulations are not simplified, even as efforts continue to reduce dependence on foreign technologies such as cloud services and AI platforms. This comes as concerns about US President Donald Trump’s foreign policy could lead to a “tech decoupling”.While developing its own AI infrastructure could make Europe “more resilient” over time, he said “the conclusion is not that we should wait for AI factories to be built in Germany or Europe before we start tuning our models.”
Siemens CEO’s views align with some European businesses
Busch’s comments reflect concerns among some European businesses that reducing reliance on US technology companies too quickly could increase costs and slow investment. This comes as the European Commission is expected to present a “tech sovereignty package” in May to strengthen cloud infrastructure and support the domestic AI sector.The EU is also facing challenges in implementing its AI regulation, which came into force last year. The rules have drawn criticism from major technology companies, the US government, and some European companies, who argue that they could make AI adoption more difficult.Busch said delays in AI deployment due to security concerns or regulation could affect growth, adding that Europe’s approach to AI control was “completely miscalibrated” compared to the US. He described the difference by saying the US economy was a “fast-flowing river where all these companies are embracing this technology,” while Europe’s ecosystem resembled “standing water.”He also pointed out that European rules do not clearly separate private and business uses of AI. “If you have two companies and they make a contract on how to share data, why would I need to regulate the way companies are sharing that data?” he asked.Busch added that Siemens is investing €1 billion in developing its own AI tools, including a virtual shop floor manager, but is prioritising investments in the US and China. “We do invest also in Germany, but in a second wave,” he said, referring to efforts supported by Chancellor Friedrich Merz to attract investment.He noted that industrial AI is an area where Europe could remain competitive, as companies in the region have access to large datasets. However, he noted that many companies hesitate to utilise this data or feel discouraged by regulatory requirements.
