Siemens and SAP Demand Changes to the EU’s AI Regulations
On July 13, 2025, Germany’s two largest technology firms — Siemens and SAP — called for significant changes to the European Union’s AI Act, claiming the current regulatory framework stifles innovation and could impede the competitiveness of European companies. The plea comes as the EU prepares to finalize its landmark AI legislation, which aims to establish strict rules for the development and deployment of artificial intelligence across member states.
This article explores the ongoing debate, providing insights into why Siemens and SAP are advocating for an EU AI Act revision, how other stakeholders have reacted, and what the potential implications are for Europe’s tech landscape.
Background: The EU AI Act
The European Commission proposed the AI Act in April 2021, marking the world’s first comprehensive regulation of artificial intelligence. The law categorizes AI systems based on risk levels — unacceptable, high, limited, and minimal — with corresponding obligations for developers and users. Its goal is to ensure AI systems in the EU are safe, transparent, and aligned with fundamental rights.
While the legislation has been praised for addressing ethical concerns and promoting trust, critics argue that it is overly burdensome for businesses, particularly for high-risk categories that require exhaustive documentation, human oversight, and potential bans on certain applications.
Siemens & SAP Speak Out
In a joint letter published by the Frankfurter Allgemeine Zeitung on July 13, Siemens CEO Roland Busch and SAP CEO Christian Klein urged European policymakers to revisit the AI Act’s provisions. They highlighted the need to balance innovation with safety and warned that the current draft could discourage investment and hinder Europe’s position in the global AI race.
“We support the principles of trust and transparency. But the current design of the AI Act risks stifling innovation at a time when Europe needs to accelerate its technological leadership,” wrote Busch and Klein.
Both companies are major players in AI-driven industrial automation, enterprise software, and cloud solutions. They argued that compliance costs, uncertainties in definitions, and overly broad risk categorizations would disproportionately affect European firms compared to competitors in the U.S. and China.
Reactions from Policymakers and Experts
The joint statement sparked a lively debate across the EU. Thierry Breton, European Commissioner for Internal Market, defended the Act, saying it was essential to maintain public trust and avoid harmful uses of AI.
However, Markus Ferber, a German member of the European Parliament, acknowledged the concerns: “It’s crucial that our rules protect citizens but also empower our businesses to innovate and compete globally. We should avoid unnecessary red tape.”
Some academics and digital rights groups criticized Siemens and SAP for prioritizing profits over accountability. Dr. Eva Schulz, a technology ethics professor in Berlin, remarked: “Tech firms often invoke innovation to avoid regulation. But without safeguards, we risk harm to society and fundamental rights.”
What’s at Stake?
If the EU AI Act remains unchanged, firms developing AI systems that fall into the high-risk category — such as biometric identification, critical infrastructure management, and recruitment tools — will have to meet strict requirements.
Siemens and SAP argue this could:
- Increase compliance costs, hurting SMEs in the supply chain.
- Create delays in deploying innovative solutions.
- Make European firms less attractive to investors compared to U.S. startups enjoying lighter regulation.
Conversely, proponents of the Act argue that strong rules will foster public trust and prevent scandals that could set back the industry.
Potential Revisions
Experts suggest that the EU could revise the Act by:
- Narrowing definitions of high-risk applications.
- Introducing sandboxes for testing new AI systems without full compliance.
- Providing clearer guidance on compliance expectations.
- Offering financial or technical support to SMEs.
Whether these adjustments will happen remains to be seen. The European Parliament and Council are in the final negotiation stages, with a vote expected later this year.
Industry Impact & Outlook
The outcome of this debate could significantly shape Europe’s tech industry. If Siemens and SAP succeed in pushing for an EU AI Act revision, businesses might see more flexible rules that encourage innovation. If not, European firms will need to adapt to a rigorous compliance environment.
For now, businesses are urged to prepare for the upcoming regulations while advocating for practical changes. As Roland Busch concluded in his statement: “Europe can lead in ethical AI, but only if we empower our innovators alongside protecting our citizens.”
