Siemens warns that current European regulations on artificial intelligence could put the brakes on investments in the region. According to CEO Roland Busch, the company risks increasingly shifting its AI spending outside Europe—particularly to the United States and China—if the European Union does not adjust its course.
Busch argues that the European approach does not sufficiently distinguish between different types of AI applications. In his view, industrial applications—such as those in factories and automation—are wrongly lumped together with consumer applications. During an interview in Hanover, as cited by Bloomberg, he noted that this leads to additional bureaucratic burdens on top of existing sector-specific regulations. According to him, it makes no sense to treat data from machines the same way as personal data, and this makes it difficult to justify investment decisions to shareholders.
Artificial intelligence is playing an increasingly significant role within Siemens. The company has set aside approximately one billion euros for industrial AI, but a substantial portion of that is expected to be spent outside Europe. Busch explicitly points to the regulatory burden within the EU as the decisive factor.
Widespread criticism from industry regarding EU rules
Siemens’ criticism is not an isolated case. For some time now, the industry has been voicing concerns that European AI legislation is complex and sometimes contradictory. Companies fear that this will cause Europe to lose ground to other regions where innovation can take place more quickly. At the same time, additional rules already apply in Europe, such as the Machinery Directive, which requires manufacturers to carefully analyze and manage the risks of autonomous systems.
The European Commission has recently proposed measures to streamline the regulations. These include, among other things, a deferral of certain obligations regarding high-risk AI systems and the simplification of procedures for cybersecurity notifications. There would also be greater flexibility to use data for training AI models. Busch, however, finds these adjustments insufficient to make a real difference and calls them too limited to solve the structural problems.
Calls for change are also coming from the political sphere. German Chancellor Friedrich Merz stated that Europe must modernize its rules and better align them with the reality of AI development. According to him, the original principles of the legislation are based on a time when the impact of AI was not yet fully understood.
Siemens is focusing on autonomous AI in engineering
Siemens itself has evolved in recent years from a traditional industrial conglomerate into a player with a strong focus on software and automation. That transformation is gaining new momentum with the introduction of the Eigen Engineering Agent, an AI system capable of performing tasks autonomously within industrial environments. Instead of merely providing support, the system can, among other things, generate code, set up configurations, and verify results.
According to the company, such technology can significantly increase productivity, although Busch notes that the requirements in industrial applications are much higher than those for consumer-oriented AI. Accuracy and reliability are crucial in this regard.
Siemens’ strategic course also remains focused on further expansion in software. Since the acquisition of UGS in 2007, software has grown into a significant part of revenue. Under Busch, major acquisitions have been added, such as Altair and Dotmatics. The company continues to actively seek new acquisitions, in both software and hardware, with a strong emphasis on everything related to data processing and digital applications.
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