Prioritizing tech sovereignty can hurt Europe in the AI race, Siemens exec says

Throttling AI innovation for the sake of tech sovereignty would be a disaster for Europe, according to the head of the industrial and technology giant Siemens.

The warning from the top manager comes as the executive body in Brussels prepares to present the EU’s delayed tech sovereignty package at the end of May.

Siemens boss bets on existing AI tools over building EU’s own

Prioritizing the development of domestic artificial intelligence (AI) infrastructure would prove disastrous for the European Union, according to Roland Busch, the man at the helm of Siemens.

The chief executive of the German industrial conglomerate has made it clear he favors deploying existing tools already built by others to boost economic growth on the Old Continent.

Busch, who has been steering Europe’s largest engineering company towards technology since he took over in 2021, shared his thoughts on the matter with the Financial Times.

Quoted in an article that came out Tuesday, he also insisted the EU risks lagging behind in the race for AI solutions even further if it does not simplify its regulations.

His comments coincide with European efforts to reduce dependency on U.S. tech companies in a number of areas, including cloud infrastructure, artificial intelligence and office software, among other products and services.

The European push in that direction comes amid concerns that the foreign policy of President Donald Trump’s administration could lead to a “tech decoupling,” the report highlighted.

While the Siemens SEO admitted that building its own AI infrastructure would make the EU “more resilient” over time, he insisted Europeans shouldn’t wait for AI factories to be built in Germany or elsewhere in Europe before starting to tune their AI models and stressed:

Roland Busch’s statements echo concerns expressed by a number of companies in the region that weakening ties with U.S. tech firms would slow investment and raise costs, the business daily highlighted.

The AI regulations the European Union has been trying to implement have been met with opposition from big tech companies, Washington and some member states that fear the new rules would make it harder to use the technology.

Europe’s landmark AI regulation dogged by delays

The European Commission recently delayed its flagship “tech sovereignty package” for a second time, as reported by Euractiv earlier this month. Its adoption was initially planned for March 25, but was moved to April 15 and is now rescheduled for May 27.

The measures include the Cloud and AI Development Act (CAIDA), the Chips Act 2, a strategic roadmap for digitalization and the use of AI in energy, as well as a strategy on open-source software.

CAIDA, in particular, has been portrayed as a key element of the bloc’s push towards tech sovereignty. The legislation should relax rules for building data centers as part of efforts to boost construction of digital infrastructure within the EU to help catch up with the leaders in the accelerating global AI race.

The new version of the Chips Act aims to achieve what the original legislation failed – increase semiconductor manufacturing inside the bloc. And the open-source strategy is expected to support projects that have the potential to become viable alternatives to U.S. tech solutions.

The delays in the deployment of AI in Europe, due to security concerns and overregulation, would slow growth, Roland Busch also warned, accusing the EU of having a “miscalibrated” approach to exerting control over the technology.

In that regard, he likened America’s embrace of artificial intelligence to a “fast flowing river” in comparison with Europe’s “standing water” tech ecosystem.

Siemens is investing €1 billion (nearly $1.16 billion) in the development of AI tools, according to its top executive. But most of the money is likely going to the U.S. and China, as his statements indicated.

Last spring, the European Commission announced it would allocate €1.3 billion for investments in artificial intelligence, cybersecurity, and digital skills with strategic importance for the EU’s tech sovereignty.

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