The European Union's Artificial Intelligence Act is facing fierce opposition from the tech industry as companies scramble to meet the August 2, 2025 implementation deadline for its General Purpose AI Code of Practice. More than 100 firms across Europe have joined forces to demand significant delays and revisions to what they describe as overly complex and contradictory regulations.
The controversy centres around the Code of Practice's three core chapters covering transparency requirements, copyright compliance, and safety protocols for AI models deemed to carry systemic risk. These provisions primarily affect major AI developers including OpenAI, Anthropic, Google, and Meta, whose large language models fall under the Act's stringent oversight requirements.
In an unprecedented move, 45 senior executives from European giants including Mercedes-Benz, Lufthansa, Philips, Airbus, and BNP Paribas signed an open letter calling for a two-year postponement. The letter argues that current guidelines are "unclear in some areas and contradictory in others," warning that the EU risks "losing itself in the complexity of regulating artificial intelligence."
The pushback intensified when Siemens CEO Roland Busch and SAP CEO Christian Klein broke ranks to demand fundamental revisions to the entire AI Act framework. Speaking to Frankfurter Allgemeine Zeitung, Busch characterised the regulations as "toxic to the development of digital business models" and called for a complete overhaul that would promote rather than restrict innovation.
Industry concerns focus particularly on compliance costs and technical implementation challenges. The transparency requirements mandate detailed documentation of training data and model capabilities, while copyright provisions require companies to demonstrate they have not used protected content without permission. Safety protocols demand extensive risk assessments and mitigation strategies for models exceeding specific computational thresholds.
European policymakers defend the framework as necessary protection against AI risks, but the industry revolt highlights growing tensions between regulatory caution and competitive pressures in the global AI race. With major US and Chinese AI companies continuing rapid development cycles, European firms warn that overly restrictive regulations could cement their disadvantage in the critical technology sector.
The European Commission has yet to respond formally to the industry demands, but the unprecedented scale of opposition suggests potential modifications to implementation timelines may be under consideration.