Dozens of European companies urge delay to AI Act implementation

More than 45 major European companies including ASML Holding NV, Airbus SE and Mistral AI have called on the European Union to suspend implementation of its artificial intelligence regulation for two years, warning that the landmark legislation threatens the continent’s competitiveness in the global AI race.

In an open letter to European Commission president Ursula von der Leyen, business leaders from companies spanning aerospace, technology and finance sectors asked for a postponement of rules governing the most powerful AI models, which are set to come into force next month.

“This 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,” the letter stated.

The signatories, organised by the EU AI Champions Initiative and including chief executives from BNP Paribas, Carrefour and Philips, warned that “Europe’s AI ambitions at risk, as it jeopardises 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 criticism centres on delays in delivering crucial implementation guidance, particularly a code of practice that would help companies comply with the regulation. Originally scheduled for May, the European Commission has pushed back publication of these guidelines, with officials now suggesting the code may only apply at the end of 2025.

Companies have complained that the Commission’s working groups, comprising AI developers, academics and digital rights activists, were still finalising detailed guidance as of July, despite the August deadline for compliance by powerful AI models such as OpenAI’s ChatGPT.

The AI Act, passed last year, requires AI developers to provide information about model training and implement policies respecting copyright law. The most sophisticated models must take additional steps to mitigate risks and report system architecture details. Non-compliance can result in fines of up to 7 per cent of annual sales for general violations or 3 per cent for companies developing advanced AI models.

Meta Platforms’ head of global affairs Joel Kaplan previously described the code of practice as “unworkable and infeasible” during a Brussels event in February, whilst Alphabet has criticised guidelines requiring third-party model testing and copyright protection measures.

The Commission has pushed back against delay calls, with a spokesperson stating: “Our commitment to the goals of the AI Act, such as establishing harmonised risk-based rules across the EU and ensuring the safety of AI systems in the European market, remains unchanged.”

However, the bloc indicated flexibility in its approach, noting that “all options remain open for consideration” as part of upcoming digital rules simplification efforts.