EU urged to pause rollout of new AI rules
Businesses and politicians are calling on the EU to pause the rollout of its wide-ranging new AI Act which became law last year. The act relies on technical standards which have been slow to emerge. Provisions of the act such as new rules for General-Purpose AI (GPAI) models, due to apply on August 2nd, still lack essential guidance.
Swedish prime minister Ulf Kristersson has called the new rules ‘confusing’ and said that he worried the continued rollout could lead to Europe falling behind technologically or specific applications not being available on the European market.
Business leaders have been quick to criticize the rollout too. Steven Drost, executive vice chairman at tech ecosystem builder CodeBase, says:
Europe’s AI ecosystem is at a crossroads. Regulation is essential, but it shouldn’t drive startups out. Our strength isn’t in competing head-to-head with the US or China, but in fostering niche, responsible AI solutions aligned with our commitment to trust and ethical standards. The future of European AI innovation depends on collaboration, specialisation, and adaptable regulatory frameworks that empowers startups.
The EU must work to create a pro-business environment that encourages growth while maintaining safeguards. This is where ecosystem builders play a vital role by offering tailored support to founders and acting as bridges between innovators, academia, and policymakers to shape flexible regulations.
Europe may not lead AI in terms of scale and capital, but that’s not the primary goal. Its power lies in depth, ethical leadership, and strategic impact. By concentrating on specialisation and purpose-driven innovation, Europe can set a new benchmark for AI that the rest of the world will strive to emulate.
The Computer and Communications Industry Association (CCIA) Europe’s senior vice president and head of office, Daniel Friedlaender says, “Europe cannot lead on AI with one foot on the brake. With critical parts of the AI Act still missing just weeks before rules kick in, we need a pause to get the Act right, or risk stalling innovation altogether.”
The European Commission’s tech chief, Henna Virkkunen, has said a pause is possible if the necessary guidance is not ready in time.
These concerns come at a time when the US administration’s ‘big beautiful bill’ seeks to place a 10-year moratorium on state-level laws governing AI in order not to stifle innovation. However, this move has been criticized as potentially removing protections for consumers.
Do you see regulation of AI as a brake on innovation or as an essential safeguard? Tell us in the comments.
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