Europe's Top Firms Demand Two-Year AI Act Delay, Citing Innovation Threat

A coalition of more than 45 prominent European companies, including heavyweights like semiconductor equipment manufacturer ASML, aerospace giant Airbus, and the French AI startup Mistral AI, has formally requested that the European Commission postpone the implementation of its landmark Artificial Intelligence Act by two years.[1][2][3] In an open letter addressed to Commission President Ursula von der Leyen, the business leaders argue that a "clock-stop" is necessary to prevent the regulation from hampering innovation and jeopardizing the continent's competitiveness in the rapidly advancing field of artificial intelligence.[4][2] The call for a delay highlights a growing tension between the EU's ambition to set a global standard for AI governance and the practical concerns of the industries expected to comply with the new rules.

The core of the companies' argument centers on the complexity and lack of clarity surrounding the AI Act.[5] Signatories to the letter, which also include executives from Mercedes-Benz, SAP, and Lufthansa, lamented what they describe as "unclear, overlapping and increasingly complex EU regulations" that disrupt their ability to do business effectively in Europe.[4][5] A primary point of contention is the absence of finalized technical standards and guidelines needed for compliance.[6][7] The AI Code of Practice, a crucial document intended to help developers, particularly of general-purpose AI (GPAI) models, understand and meet their obligations, missed its initial publication date and is still not available.[8][9] This lack of guidance creates significant uncertainty for companies, who argue they are being asked to prepare for a law without a clear roadmap for how to adhere to it.[2][8] The requested two-year pause would apply to upcoming obligations for GPAI models, set to take effect in August 2025, and for high-risk AI systems, with a deadline of August 2026.[2] The business leaders contend this additional time would allow for a "reasonable implementation by companies, and for further simplification of the new rules."[10][2]

The implications of proceeding with the current timeline, the companies warn, are severe. They argue that the regulatory uncertainty and the administrative burden of the AI Act risk stifling innovation within Europe.[10] This could lead to a competitive disadvantage compared to rivals in the United States and Asia, who operate under clearer and less stringent frameworks.[10][6] The fear is that the EU's ambitious regulatory approach, while well-intentioned, could inadvertently drive AI development and investment elsewhere, undermining the bloc's own goals of technological sovereignty.[10][5] The letter states that a postponement, coupled with a commitment to prioritize "regulatory quality over speed," would send a powerful signal to innovators and investors that Europe is serious about its competitiveness agenda.[2] The coalition of businesses insists they have developed detailed proposals for a more "innovation-friendly" implementation strategy and are ready to collaborate with the Commission.[10][2] The potential penalties for non-compliance are substantial, with fines reaching up to 7% of a company's annual global sales, adding to the pressure for clarity.[6]

This call for a delay has not emerged in a vacuum. It follows months of lobbying and growing unease from various corners of the tech industry and even from some political leaders.[4][9] Tech lobbying groups have been pushing for a "stop-the-clock" mechanism to be built into the process, allowing for deadlines to be pushed back when essential guidance is not ready.[7][11] The request has found a receptive audience in some quarters, with EU tech chief Henna Virkkunen acknowledging the potential need for a postponement if standards are not ready in time.[7][11] Officials from member states like Poland have described the industry's request as "reasonable," though they emphasize that any delay must be accompanied by a clear plan of action.[7] Swedish Prime Minister Ulf Kristersson has also voiced concerns, calling the AI Act "confusing" in the absence of common standards.[9] However, there is no universal agreement, with other member states like Spain supporting simplification but cautioning against outright deregulation.[12] The European Commission has yet to officially comment on the request to postpone the rules.[8]

In conclusion, the unified call from major European industrial and technology leaders to pause the AI Act represents a critical juncture for the landmark regulation. The demand for a two-year delay is rooted in tangible concerns about a lack of clear implementation guidelines and the potential for the complex rules to hinder European innovation and global competitiveness.[4][2][5] While proponents of the Act see it as a necessary step to ensure the development of safe and ethical AI, the signatories of the letter argue that a rushed implementation without the necessary supporting frameworks could be counterproductive. The European Commission now faces the difficult task of balancing its pioneering regulatory ambitions with the practical realities and urgent warnings from the very companies that will be instrumental in achieving Europe's AI goals. The decision it makes will have profound consequences for the future of artificial intelligence development and regulation, not just within the EU, but potentially across the globe.