Friedrich Merz and Siemens demand lighter EU regulation for industrial AI ahead of AI Act

Germany's Merz says industrial AI needs less stringent EU regulation

HANOVER, Germany, April 19 (Reuters) - Germany's Chancellor Friedrich Merz said on Sunday that artificial intelligence for industrial use will require more regulatory freedom in the European Union than other AI areas such as consumer use to boost productivity. "I will push to ease the regulatory burden ⁠in the EU on AI and, where possible, to exempt industrial AI from the current regulatory straightjacket that is too tight for AI within the European Union," Merz said in a speech at the annual industrial fair Hannover Messe. "AI will contribute to ⁠greater efficiency and productivity, optimised use of resources and, above all, reduced costs," he added. Germany has been eager to catch up with ⁠dominant AI players the United States and China in a global race to master a ⁠transformational technology and attract high-income jobs. Last month, Berlin to encourage investments to ⁠boost AI data processing capacity at least fourfold by 2030. Reporting by Andreas Rinke; Writing by Ludwig Burger; Editing by Lisa Shumaker Our Standards: The Thomson Reuters Trust Principles., opens new tab

Merz, Siemens call for easing of EU regulations on industrial AI

German Chancellor Friedrich Merz speaks at the weekend. Image: Hannover Messe At the huge Hannover Messe trade fair over the weekend, attendees heard calls for a lightening of EU Act regulations for industrial AI. It's one of the largest industrial trade fairs in the world, and little surprise that AI dominates this year at the Hannover Messe in Germany, with both Siemens's CEO and German Chancellor Friedrich Merz calling for a carve out for industrial AI when it comes to EU regulations. In a speech on Sunday at the Hannover Messe , Merz warned that if Europe is to boost productivity, industrial AI will need more regulatory freedom than, for example, consumer AI. "I will push to ease the regulatory burden ⁠in the EU on AI and, where possible, to exempt industrial AI from the current regulatory straightjacket that is too tight for AI within the European Union," Merz said in his speech. "AI will contribute to ⁠greater efficiency and productivity, optimised use of resources and, above all, reduced costs." This position may well be influenced by the views of Munich-based Siemens, Germany's most valuable company with a market capitalisation of some €194m, according to Bloomberg. Speaking in an interview at the Hannover Messe, Siemens CEO Roland Busch warned the industrial giant would prioritise investments in the US and China if the EU did not lighten its regulations in a sector he said is already subject to sector-specific regulations. "It's complete nonsense to treat industrial and machine data the same way as personal data," Busch said, according to Bloomberg. "I can't explain to my shareholders why I'm investing money in an environment where I'm being held back." The warnings come at a time when the EU's AI Act is due to come into full force on 2 August of this year. While supporters have hailed the EU's position on AI as a measured and necessary approach to a technology that has led to scandals like that of the Grok 'nudification' app, both critics and supporters continue to call for amendments, as Europe vies to compete in the fast-moving world of AI innovation. So we can expect to hear many more such calls between now and August. Don't miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic's digest of need-to-know sci-tech news.