Siemens CEO Roland Busch argues Europe risks economic stagnation by prioritizing sovereign AI infrastructure over leveraging existing tools. Speaking amid EU efforts to reduce reliance on US tech giants, Busch warned that overregulation and delays in deploying AI could leave the continent trailing in the global AI race. He emphasized that $1.1 billion in European investments in domestic AI development might prove futile if regulations stifle innovation. Busch criticized the EU’s approach as “completely miscalibrated,” contrasting it with the US’s faster, less restrictive ecosystem.

Busch highlighted concerns that unwinding ties with US firms like Microsoft and Google could raise costs and deter investment. He pointed to Siemens’ own €1bn bet on industrial AI tools, including a virtual shop floor manager, while acknowledging Europe’s lag in AI adoption. The CEO stressed that private-sector data sharing agreements, not heavy-handed rules, should address AI risks. “If two companies contract data use, why regulate that?” he questioned, underscoring his view that sovereignty efforts are counterproductive.

The EU’s planned “tech sovereignty package” in May aims to boost domestic cloud infrastructure and AI industries, but implementation lags. Busch’s critique aligns with broader pushback from Big Tech and US policymakers against strict EU AI regulations. He urged simplifying rules to avoid hampering Europe’s ability to compete, warning that “standing water” governance contrasts with the US’s “fast-flowing river” of innovation. Busch also noted European companies possess vast data troves for AI training but face reluctance or regulatory barriers to utilization.

Busch’s warnings come as Europe grapples with balancing security concerns and innovation. While advocating for industrial AI parity with US and Chinese firms, he cautioned against throttling progress for sovereignty. “You should not throttle your innovation speed for the sake of creating sovereignty,” he said. The debate underscores Europe’s struggle to reconcile tech independence with economic competitiveness in an era of geopolitical tech rivalry.