Leading executives from major European companies, including Airbus and BNP Paribas, have urged the European Union to halt its landmark Artificial Intelligence Act, according to an open letter seen by the Financial Times. The CEOs warn that unclear and overlapping regulations risk undermining Europe’s competitiveness in the global AI race.
The letter, signed by 44 prominent business leaders across industries, calls on European Commission President Ursula von der Leyen to introduce a two-year pause on the legislation, which is scheduled to come into force in August. Signatories include the heads of French retailer Carrefour and Dutch healthcare group Philips.
The group argued that the EU’s complex AI regulations jeopardize the continent’s ability not only to nurture AI champions but also to enable widespread AI adoption essential to competing globally. The AI Act, widely regarded as the world’s strictest regulatory framework for artificial intelligence, has faced pressure from the US government, Big Tech companies, and European industry groups alike.
The lobbying effort coincides with a crucial meeting in Brussels last Wednesday between EU officials and major US tech firms to discuss a softened draft of the AI Act’s “code of practice.” This code will guide AI companies on compliance, particularly for powerful models such as Google’s Gemini, Meta’s Llama, and OpenAI’s GPT-4. Brussels has delayed the code’s publication, initially due in May, as it prepares to ease some regulatory provisions.
Henna Virkkunen, the EU’s tech chief, stated on Monday that the code of practice is being finalized ahead of the August deadline to help industries and SMEs comply with the new rules.
Behind the scenes, European Commission officials and national governments are exploring ways to streamline the AI Act’s complex timeline. Although the legislation entered into force in August last year, many of its key provisions will only come into effect in the coming years.
Patrick Van Eecke, co-chair of the global cyber, data, and privacy practice at law firm Cooley, described the situation as “regulitis,” criticizing the lack of legal certainty for industry players.
The letter, organized by the EU AI Champions Initiative — a coalition representing 110 companies across Europe — argued that postponing the AI Act would send a strong signal to innovators and investors worldwide that Europe is serious about simplification and maintaining competitiveness.
European AI startups and venture capitalists have also voiced concerns. A separate letter from over 30 AI founders and investors called the legislation “a rushed ticking time bomb,” fearing inconsistent rules across member states would favor large US tech firms with deeper pockets, disadvantaging smaller local companies.
Additional worries stem from the law potentially holding companies that integrate AI systems to the same stringent standards as Big Tech, particularly in areas like copyright liability. The uncertainty around how member states will enforce the rules could deter AI adoption in Europe, risking a competitive gap with the US and China.
The European Commission reaffirmed its commitment to the AI Act’s core goals — harmonized, risk-based rules and AI safety — but acknowledged ongoing efforts to simplify digital regulations, leaving “all options open for consideration at this stage.”
