Roland Busch, CEO of Siemens AG, has leveled sharp criticism at the speed of European AI regulation. His core complaint: the EU takes roughly two years to pass major legislation like the AI Act and Data Act – yet in that same timeframe, AI models advance six to eight times faster. This creates a growing gap that Europe cannot close.
Key Points
- Roland Busch (Siemens CEO) criticizes a two-year delay in EU AI regulation
- AI models develop 6–8 times faster during this period than legislation progresses
- Of €1 billion earmarked for industrial AI applications, most flows to the USA rather than Europe
- Busch demands faster approval processes and fewer bureaucratic hurdles
Regulatory Pace vs. Innovation Speed
Busch warns of a fundamental misunderstanding in Brussels: regulating before fully understanding the subject matter endangers innovation. The gap between legislative tempo and technological advancement is his central concern. While the EU still debates, other nations act – and attract capital.
"Europe is constantly falling behind," Busch's message amounts to. He urges the EU not to throttle technological development through excessive regulation and to dramatically accelerate approval processes for AI applications.
Capital Flight to the USA
The criticism is not merely theoretical – it translates into hard investment numbers. Siemens has allocated €1 billion for industrial AI applications. Yet the bulk of this capital flows to the USA, not Germany or Europe. The reason: infrastructure projects can be executed more efficiently there. Particularly the expansion of AI data centers in the USA benefits from this dynamic – a market momentum that, in Busch's view, will persist until 2027.
By contrast, the Siemens chief criticizes approval processes for data centers in Germany as sluggish. Those who can build fast win – and that is currently the USA.
Not a Bubble, but a Structural Bet
Busch does not view the current AI boom as a temporary speculative bubble. Instead, he calls it "the greatest technological bet in history." A crucial distinction: according to Busch, investments rest on solid cash flow, not borrowed capital – underscoring the trend's sustainability.
On trade policy, Busch also weighed in: he opposes blanket EU tariffs against China and sees the country instead as a "highly capable competitor" that should be met with Europe's own innovation strength.
What This Means for German Companies
Busch's critique signals a growing dilemma for German mid-market firms and large corporations: the EU AI Act provides legal certainty but may simultaneously drive investments and talent to faster markets. Companies must prepare for extended compliance processes while simultaneously assessing whether European AI infrastructure investments remain economically viable. For compliance teams, this means: the AI Act is coming – but possibly later and with less European capital behind it than hoped.
Sources
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