EU AI Act Crisis: Why You Must Act Now

45+ Top Executives Demand Postponement – Siemens CEO Calls Law "Toxic"

Just two weeks before the enforcement deadline, the EU AI Act is under massive attack. Learn how to stay compliant amid 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 Bitkom to 45+ top executives of European corporations and NGOs. You face an unprecedented regulatory dilemma.

45+
Top Executives Demand Postponement
2 Weeks
Until Enforcement Deadline
7%
Potential Penalty of Annual Turnover
"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 the fundamental weaknesses of the Code of Practice. Unclear definitions, bureaucratic overload, and endangering 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 you: "The flaws of the AI Act, particularly the overly tight timeframe for applying its rules, are already becoming apparent." You must act now, even though the rules are not yet final.

Impact on Modern Markets

As a modern enterprise, you face special challenges. The global economy is particularly affected by the AI Act crisis, as it traditionally acts export-oriented and regulation-compliant. The uncertainties therefore hit you particularly hard.

67%
of companies already use AI
$89B
AI market potential globally by 2030
45%
Cost increase through AI Act compliance

Regulatory Framework for You

Compliance Requirements You Must Consider

  • GDPR compliance for AI data processing in addition to AI Act
  • NIS2 directive for critical infrastructure with AI components
  • Labor law regulations for AI systems in the workplace
  • Product liability law for AI-supported products

Market Opportunities for You

Develop RegTech Solutions

Use compliance challenges as business opportunities. Companies are desperately looking for AI Act compliance solutions.

Trust as Competitive Advantage

Customers value compliance and trust. Position yourself as the trusted AI provider.

Leverage Export Advantages

AI Act compliance opens global markets. Use regulation as a quality feature for international expansion.

Secure Funding

Governments and EU promote AI compliance. Secure subsidies for your transformation projects.

"There's an opportunity to become a pioneer for trustworthy AI. Those who invest in compliance now win long-term." - Dr. Margarete Bauer, AI Expert

Challenges You Must Master

Thoroughness becomes a disadvantage when regulations are unclear. You must learn to deal with uncertainties while remaining compliant. The challenge lies in combining traditional values with regulatory flexibility .

Success Factors for Modern Markets

  • Pragmatic Compliance: Not perfect, but timely and adaptable
  • Industry Cooperation: Use networks and associations for joint solutions
  • Regulatory Diplomacy: Participate actively in political discussions
  • SME Focus: Develop solutions specifically for small and medium enterprises

You face a choice: Either use the AI Act crisis as an opportunity for innovation and competitive advantages, or let regulation paralyze you. The choice is yours.

Massive Criticism from All Sides

Criticism of the AI Act comes from all directions and shows you the extent of the crisis. From Bitkom to 45+ top executives to NGOs - nobody 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 burden 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.

Bitkom: Diplomatic Warning

The digital association sees 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: Postponement Demanded

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

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 by lobbying.

This broad criticism shows you: The AI Act is not yet ready for implementation. Nevertheless, you must prepare for it, 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 rushed timelines and inadequate stakeholder consultation that put you in this difficult situation.

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

Prohibitions 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 is not finalized by August, the AI Office must set the rules itself - a democratic deficit that affects you.

International Tensions

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

Industry-Specific Impacts for You

Every industry faces specific challenges from the AI Act. Understand what special requirements await you and how you can successfully master them.

Financial Services

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

Healthcare

Medical Device Regulation 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. Automotive manufacturers particularly affected.

Manufacturing

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

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

Compliance Challenges You Must Overcome

AI Act compliance brings four central challenges that you must approach strategically. Understand these hurdles to successfully overcome them.

Abuse Potential

Without built-in filters, uncensored models can be abused for harmful content. Robust monitoring is essential.

Regulatory Risks

GDPR and EU AI Act require special caution. Compliance measures must be considered from the beginning.

Quality Control

Without automatic filters, responsibility for manual quality checking and content control increases.

Technical Complexity

Open-source implementation requires more technical know-how than ready-made SaaS solutions.

These challenges are manageable but require a thoughtful implementation strategy and continuous monitoring. The key lies in balancing freedom and responsibility.

Your Roadmap to AI Act Compliance

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

Immediate Measures (until 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 (until 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 simultaneously lobbying for reforms
  • Industry Cooperation: Develop joint 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 different scenarios and be able to 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 intense 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 smart now win 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 of experience in regulation and compliance
  • Pragmatism: Solutions that work despite uncertainties
  • Network: Direct line 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 that defines different risk categories for AI systems. It's controversial because 45+ top executives demand postponement and compliance requirements are criticized as too bureaucratic and innovation-hindering. Main criticism points are unclear definitions, rushed timelines, and endangering 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 simultaneously lobbying for reforms.
What penalties threaten non-compliance with the AI Act? +
Violations of prohibited AI practices can result in fines of up to 7% of global annual turnover. For other violations, penalties of up to 4% of annual turnover can be imposed. These penalties apply from August 2, 2025, even if the Code of Practice is not yet final.
Will the AI Act really be postponed or reformed? +
A moderate reform is likely (45% chance), but a fundamental overhaul is unlikely (15% chance). Status quo with minimal adjustments is the most likely scenario (40% chance). You should prepare for all scenarios and build flexible compliance systems.

Further Sources