Siemens CEO Busch Urges Caution on AI Regulation

Roland Busch, the CEO of Siemens AG, is urging European policymakers to adopt a more agile approach to regulating artificial intelligence, warning that overly strict rules could impede the technology's rapid advancement. "We must not slow down the development pace of AI technology through regulation," Busch stated in an interview with Welt am Sonntag.

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We must not slow down the development pace of AI technology through regulation.

Busch highlighted the swift evolution of AI, noting that by the time regulations like the 'AI Act' or 'Data Act' are finalized, which can take years, AI models may have already undergone multiple significant advancements. "In this time, AI models can already have evolved six or eight times further," he explained, suggesting that regulatory frameworks often lag behind technological progress, leading to a perpetual state of being "behind the curve."

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In this time, AI models can already have evolved six or eight times further.

Despite concerns about regulation, Busch remains a strong proponent of investment in AI, seeing it as a transformative force for the economy. Siemens itself has benefited from high demand, particularly from US-based AI data centers. He dismissed fears of an AI bubble, characterizing the current investment surge as "the biggest bet in history on technology," but one largely funded by companies with substantial cash flow, not borrowed money.

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AI will definitely change the markets positively, increase efficiency and effectiveness, conserve resources, and accelerate innovation.

Busch is confident that AI investments will prove highly beneficial, citing early positive impacts. "AI will definitely change the markets positively, increase efficiency and effectiveness, conserve resources, and accelerate innovation," he asserted. He also advised caution regarding broad EU tariffs on China, suggesting that while targeted tariffs might have specific justifications, protectionism due to a lack of competitiveness could be detrimental.

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It may be reasons for a few, targeted tariffs. However, one must be extremely careful not to protect a lack of competitiveness, because that is self-defeating.