European CEOs urge pause on AI Act as Brussels weighs major changes

European CEOs urge pause on AI Act as Brussels weighs major changes

A coalition of top European corporate leaders is urging the European Commission to pause its landmark Artificial Intelligence Act, warning that the sweeping regulations risk crippling the continent’s ability to compete globally in AI development and deployment.

In an open letter obtained by the Financial Times, the CEOs of 44 major firms—including Airbus, BNP Paribas, Carrefour, and Philips—called on Commission President Ursula von der Leyen to introduce a two-year delay in implementation. The group argues that unclear, overlapping, and burdensome requirements under the AI Act could derail Europe’s aspirations to be a serious player in the global AI race.

Mounting pressure on Brussels to ease AI rules

The letter comes amid intensifying criticism of the AI Act, which has been billed as the world’s most ambitious attempt to regulate the rapidly evolving technology. While the law technically came into force in August 2023, many of its key provisions, including those affecting powerful general-purpose AI models such as OpenAI’s GPT-4, Meta’s Llama, and Google’s Gemini, are still being developed.

Brussels is now working on a “code of practice” to help guide implementation. Originally expected in May, the draft has been delayed and is widely expected to soften the strictest elements of the original law. The EU’s tech chief Henna Virkkunen said this week that the code would be published before the act’s broader provisions take effect this August.

Industry leaders cite legal uncertainty and complexity

“This is a classic example of regulitis,” said Patrick Van Eecke of law firm Cooley, criticizing the law’s lack of legal clarity. The CEOs’ letter, coordinated by the EU AI Champions Initiative, said a pause would send a strong message to global investors and innovators that Europe is committed to competitiveness and simplification.

A key concern among both multinational corporations and AI start-ups is how the law will be enforced across EU member states. Start-up founders warn that without clear, centralized guidance, the act could result in a fragmented patchwork of national rules that larger U.S.-based tech firms are better equipped to navigate than Europe’s smaller businesses.

Fears over stifled innovation and new liabilities

Many European businesses are alarmed that the AI Act could saddle them with the same regulatory burdens as Big Tech companies—especially in areas like copyright liability—if they integrate general-purpose AI tools into their own services. Some fear the act will make them legally responsible for aspects of AI tools they didn’t build, discouraging adoption and innovation.

A separate letter signed by more than 30 European AI start-up founders and investors this week called the legislation “a rushed ticking time bomb” and warned that it could severely harm the region’s growing tech ecosystem.

EU promises flexibility, but stands by core goals

The European Commission has reaffirmed its commitment to the AI Act’s central objectives—establishing harmonized, risk-based regulations and ensuring AI system safety across the EU—but acknowledged that it is considering simplification.

“All options remain open for consideration at this stage,” the Commission said in a statement.

As Europe attempts to lead on digital governance, the AI Act has become a test case for whether it can balance technological safety and civil rights with the economic imperative to foster homegrown innovation. Whether Brussels opts for a pause, a revision, or a full-speed-ahead rollout could shape Europe’s AI future for years to come.