EU AI Act Crisis: Why You Must Act Now

45+ top executives demand delay – Siemens CEO calls law "toxic"

Just two weeks before the enforcement deadline, the EU AI Act faces massive criticism. Learn how to stay compliant despite regulatory chaos while building competitive advantages.

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Regulatory Chaos Two Weeks Before Deadline

July 16, 2025 was supposed to be a milestone: the publication of the General Purpose AI Code of Practice. Instead, it triggered a wave of criticism ranging from industry associations to 45+ top executives of European corporations and NGOs. You face an unprecedented regulatory dilemma.

45+
Top executives demand delay
2 weeks
Until enforcement deadline
7%
Penalty of annual revenue possible
"The AI Act is toxic for the development of digital business models" - Roland Busch, CEO Siemens

The problem isn't just the rushed timeline , but also fundamental weaknesses of the Code of Practice. Unclear definitions, bureaucratic overload, and threats to European competitiveness are at the center of criticism. As a company, you must develop compliance strategies despite these uncertainties.

Code of Practice: Ambitious but Problematic

The General Purpose AI Code of Practice is divided into three main chapters, each defining specific compliance requirements for you. Understand the structure to develop your compliance strategy.

The Three Critical Compliance Areas

  • Transparency Chapter: Detailed documentation of your AI models, training data, and decision processes
  • Copyright Chapter: Proof of lawful acquisition of all training data
  • Safety and Security Chapter: State-of-the-art practices for systemic risks
  • Timeline Problem: Only 10 days feedback time for 1,000 stakeholders

Boniface de Champris from the Computer and Communications Industry Association warns: "The flaws of the AI Act, particularly the excessively tight timeframe for applying its rules, are already becoming apparent." You must act now, even though the rules aren't final yet.

Massive Criticism from All Sides

Criticism of the AI Act comes from all directions, showing you the scale of the crisis. From industry associations to 45+ top executives to NGOs - no one is satisfied with the current status. You must understand why the criticism is so massive.

Unclear Definitions

What exactly is a "high-risk AI system"? Which systems fall under "systemic risks"? You must make decisions even though definitions are vague.

Bureaucratic Overload

Comprehensive documentation requirements, continuous monitoring, and regular audits strain your resources. Compliance becomes a full-time job.

Technical Complexity

Bias detection, Explainable AI, and robustness testing require specialized expertise. Not every company has these competencies.

International Fragmentation

Different regulatory approaches in USA, China, and UK create a patchwork. Global AI strategies become more complex.

Industry Associations: Diplomatic Warning

European digital associations see critical points in tightened risk identification and comprehensive audit requirements. "The Code of Practice must not become a brake on Europe's AI position."

45+ Top Executives: Delay Demanded

Mercedes-Benz, Lufthansa, Philips, Celonis, Airbus, AXA, and BNP Paribas demand a two-year delay. They warn of competitive disadvantages and complexity traps.

Siemens & SAP: Fundamental Revision

CEOs Roland Busch and Christian Klein demand a completely new framework. The AI Act is "toxic for digital business models" and endangers innovation.

NGOs: Dilution by Big Tech

The Future Society criticizes US influence in closed sessions. Important safety measures were weakened through lobbying.

This broad criticism shows you: The AI Act isn't ready for implementation. Nevertheless, you must prepare, as penalties threaten from August 2, 2025 .

Structural Problems: Staff Shortage and Time Pressure

The AI Office is massively understaffed and cannot handle the tasks. These structural problems explain the hasty timelines and insufficient stakeholder consultation that now put you in this difficult situation.

85
Total AI Office staff
30
Working on AI Act implementation
150
Staff at UK AI Safety Institute
10 days
Feedback time for 1,000 stakeholders
Legal Uncertainty on Bans

Bans for "unacceptable risks" have been in effect since February 2, 2025, but details remain unspecified. You must act without clear guidelines.

Rushed Consultation

Stakeholders had to work over the Christmas period when the second draft was published on December 19. Quality suffers under time pressure.

Lack of Legitimacy

If the Code isn't finalized by August, the AI Office must set the rules itself - a democratic deficit that affects you.

International Tensions

Trump effect amplifies US resistance. Anthropic, Apple, and Meta refuse to sign the voluntary AI Pact.

Industry-Specific Impacts for You

Each industry faces specific challenges from the AI Act. Understand which special requirements you face and how to successfully master them.

Financial Services

Additional regulatory guidelines on AI Act compliance. Special attention for algorithmic decision-making in credit and insurance. Double regulation means double effort.

Healthcare

Medical Device Regulation (MDR) and AI Act compliance must be coordinated. AI-supported diagnostics and therapy recommendations fall under high-risk categories.

Automotive Industry

Autonomous driving systems fall under high-risk categories. Close coordination with type approval procedures required. European automakers particularly affected.

Manufacturing

Predictive maintenance and quality control systems must be documented and validated. Integration into existing quality management systems is complex.

"Each industry has its own AI Act challenges. Those who develop industry-specific solutions win." - Dr. Thomas Müller, Compliance Expert

Your Roadmap to AI Act Compliance

Despite all criticism and uncertainties, you must act. This roadmap shows you how to build compliance step by step while creating competitive advantages.

Immediate Actions (by August 2025)

Inventory all AI systems in your company. Conduct risk assessment according to AI Act categories. Document training data and processes. Implement basic transparency mechanisms.

Medium-Term Measures (by 2026)

Build AI governance structures. Train your compliance teams. Integrate AI Act requirements into existing risk management systems. Prepare for audit requirements.

Long-Term Strategy (from 2026)

Establish continuous compliance monitoring. Adapt to regulatory updates. Work on international harmonization. Use compliance excellence as competitive advantage.

Success Factors for Your Compliance Strategy

  • Parallel Strategy: Compliance preparation while lobbying for reforms
  • Industry Cooperation: Develop common standards and best practices
  • Flexibility: Adaptable systems for regulatory changes
  • Continuous Monitoring: Track and evaluate regulatory developments

Three Future Scenarios and Your Options

The future of the AI Act is uncertain. You must prepare for various scenarios and react flexibly. This strategic foresight determines your success.

Status Quo (40% Probability)

AI Act implemented as planned with minimal adjustments. You must fully adapt to existing requirements. Compliance becomes mandatory, not optional.

Moderate Reform (45% Probability)

Extension of deadlines and simplification after intensive negotiations. Basic structure remains, but you get more time for implementation.

Fundamental Overhaul (15% Probability)

Comprehensive reform after massive pressure. New approaches to AI regulation emerge. You must completely rethink your strategy.

Your Optimal Strategy

Prepare for all scenarios. Build flexible compliance systems. Use uncertainty as opportunity for innovation and competitive advantages.

"In crisis lies opportunity. Those who act wisely now win in the long term." - Prof. Dr. Sandra Weber, AI Strategist

Act Instead of Wait: Your Next Steps

The AI Act is in crisis, but that doesn't mean you should remain inactive. Now is the time to act, build competitive advantages, and prepare for all scenarios.

Why You Should Act Now with innobu

  • Expertise: Over 15 years experience in regulation and compliance
  • Pragmatism: Solutions that work despite uncertainties
  • Network: Direct connection to regulatory authorities and industry associations
  • Holistic Approach: From strategy to technical implementation

The AI Act crisis is a historic opportunity . While others wait, you can build competitive advantages. Use uncertainty as a springboard for innovation and market leadership.

Start Your AI Act Strategy

Frequently Asked Questions About the AI Act

What is the EU AI Act and why is it so controversial? +
The EU AI Act is the world's first comprehensive AI law defining various risk categories for AI systems. It's controversial because 45+ top executives demand a delay and compliance requirements are criticized as too bureaucratic and innovation-inhibiting. Main criticisms are unclear definitions, rushed timelines, and threats to European competitiveness.
How can I prepare my company for the AI Act? +
You should inventory all AI systems, conduct risk assessments, establish documentation processes, and implement an AI governance framework. Despite uncertainties, proactive preparation is essential. Start with a parallel strategy: compliance preparation while lobbying for reforms.
What penalties threaten for non-compliance with the AI Act? +
Violations of prohibited AI practices face fines up to 7% of global annual revenue. For other violations, penalties up to 4% of annual revenue can be imposed. These penalties apply from August 2, 2025, even if the Code of Practice isn't final yet.
Will the AI Act really be delayed or reformed? +
Moderate reform is likely (45% chance), but fundamental overhaul is unlikely (15% chance). Status quo with minimal adjustments is the most probable scenario (40% chance). You should prepare for all scenarios and build flexible compliance systems.

Further Information