Brussels, April 25 (SANA) The European Union is facing increasing concern over its ability to retain major industrial companies as global competition in artificial intelligence intensifies, with firms weighing whether to shift investments to more flexible markets such as the United States and China.
Industry leaders and policymakers warn that differences in regulatory frameworks and economic incentives could weaken Europe’s industrial base if reforms are not introduced.
According to Euronews, Germany’s Siemens has cautioned that European regulations in data and artificial intelligence are placing growing pressure on large industrial firms and could affect investment decisions. Siemens Chief Executive Roland Busch said applying the same regulatory standards to industrial data as to personal data limits innovation and makes less regulated environments more attractive for investment.
The United States is meanwhile seeking to attract industrial capital through tax incentives and reduced regulatory constraints, a strategy often referred to as the “Trump effect” in reference to policies aimed at strengthening domestic manufacturing. Several European companies have already announced expansion plans in the U.S. market. Siemens Healthineers and Siemens Energy intend to invest billions of dollars in production capacity and artificial intelligence-related infrastructure, including data centers.
At the same time, major German firms such as SAP have called for a revision of European data and AI regulations. German Chancellor Friedrich Merz has also supported efforts to simplify rules to improve industrial competitiveness.
The European Union is developing new legislation, including the proposed Data Act, aimed at balancing data protection with innovation while facing pressure from industry to ease restrictions on data sharing.
Europe’s broader strategy includes building large-scale AI “factories,” but these efforts are challenged by reliance on imported semiconductor technology, particularly from the United States. The EU’s Chips Act, launched in 2022, seeks to boost domestic chip production, but officials estimate that hundreds of billions of euros in additional investment may be needed to close the technology gap.
As internal divisions persist over funding and industrial priorities, the EU faces a growing dilemma between maintaining digital sovereignty and ensuring global competitiveness in the fast-moving AI sector.
N.J/ABD
