EU tech lobby urges leaders to press pause on AI Act amid innovation fears

The coalition of tech companies, including Alphabet, Meta, and Apple, through their Europe chapter of the Computer and Communications Industry Association (CCIA) has reportedly urged European Union leaders to temporarily halt key aspects of the EU AI Act. Their plea follows growing concern that the accelerated roll-out of rules governing general-purpose AI (GPAI) could unintentionally stifle innovation and place European businesses at a disadvantage compared to competitors in the United States and China.

The AI Act, considered world’s most comprehensive framework for regulating artificial intelligence, came into force in June 2024, with critical provisions set to take effect from August 2, 2025. However, implementation guidance for GPAI models was delayed, and the CCIA argues that key supporting documents are still missing—rendering the current timeline unworkable.

Daniel Friedlaender, CCIA Europe’s senior vice president, warned that “without a pause, we risk stalling innovation altogether,” adding that two-thirds of European firms surveyed by AWS reported uncertainty about their compliance obligations.

Swedish Prime Minister Ulf Kristersson echoed the sentiment, calling the evolving rules “confusing,” ahead of a pivotal EU summit in Brussels, where AI regulations and trade agreements are on the agenda. EU tech officials, including Commissioner Henna Virkkunen, affirm their commitment to an “innovation-friendly” enforcement of the act, though they acknowledge the need for careful calibration.

The move has also triggered a broader debate. Advocates for robust regulation, such as Nobel laureates Daron Acemoglu and Geoffrey Hinton, warn against watering down the AI Act, stressing that independent testing and ethical safeguards are essential to preventing misuse.

"We are currently implementing the AI Act," EU tech chief Henna Virkkunen told EU lawmakers earlier this month when asked if she would consider a temporary halt to enforcing the AI Act. "I want to implement it in a very innovation friendly manner ... the main concern among some stakeholders is that this is hindering innovations.