At the Hannover Messe trade fair, Siemens CEO Roland Busch warned of the consequences of EU AI regulations for Europe as a development and application hub for artificial intelligence. The company plans to invest around one billion euros in industrial AI, but a large portion of this is slated to flow to the US if the European Union does not significantly revise its regulations. From Siemens’ perspective, the AI Act and the Data Act treat industrial applications too similarly to consumer applications, creating additional burdens in an already heavily regulated sector. This is precisely the key risk factor for Europe: capital, innovation, development, and practical AI use could increasingly migrate to other markets. The consequences therefore extend far beyond Siemens and affect the competitiveness of the entire continent. (bloomberg: 20.04.26)
EU AI Rules Jeopardize Europe’s AI Hub
Busch criticizes the current regulations because, in his view, they blur the distinction between industrial AI and consumer-oriented applications. Machine and plant data should not be equated with personal data, while at the same time companies are burdened with additional testing, documentation, and reporting obligations. He stated: “It is utter nonsense to treat industrial and machine data in the same way as personal data.” Thus, the criticism is directed not only at individual regulations but at a regulatory model that is making Europe less attractive as an economic area.
At the same time, industry points to existing regulations that already prescribe high safety standards. Manufacturers of technical equipment, for example, must comply with the EU Machinery Directive and comprehensively assess the risks of autonomous systems. New regulations, therefore, do not enter an unregulated space, but rather an area with stringent requirements. Precisely for this reason, many companies warn that the EU AI rules will make investment more difficult, delay development, and slow down the deployment of new systems in Europe.
Minor adjustments from Brussels are insufficient from the industry’s perspective
The EU Commission has already presented proposals to provide some relief to companies. These include longer deadlines for regulations concerning high-risk AI, simpler reporting channels for cyber incidents, and easier access to data for training AI models. Siemens, however, considers these approaches too limited. Busch made it clear that he would find it difficult to explain to investors why capital should flow into an environment that hinders growth and implementation.
He also received support from German Chancellor Friedrich Merz, who likewise advocated for changes in Hanover. Merz said that industrial AI must be freed from the “excessively restrictive corset” of EU regulations. This increases the pressure on Brussels to align the rules more closely with the real needs of industry. At its core, this is not just about easing the burden, but about whether Europe can secure a competitive advantage in a key technology.
Europe’s problem is evident in both development and application
Siemens is pushing ahead with its AI initiative and has introduced the Eigen Engineering Agent, a new system for industrial automation. The software is designed to independently generate code, create configurations, and monitor results. This demonstrates the extent of industrial AI and its potential economic benefits. Siemens also speaks of productivity gains of up to 50 percent.
However, applications like these highlight what is at stake for Europe. If companies increasingly concentrate research, development, and the practical application of new systems in the US or China, Europe will not only lose investments. The continent will also lose momentum in innovation, real-world experience, and influence on future industry standards. The debate surrounding EU AI regulations therefore affects not only Siemens, but Europe’s entire role in the global AI race.