Siemens scores win on EU push to streamline industrial AI rules

Siemens AG and other European tech companies have made headway on reshaping regulation for artificial intelligence in the European Union they say is putting them behind rivals in the US and China.

The bloc, following broader lobbying efforts by industry, has now put forward a set of AI rules that differentiate between industrial and consumer applications on mitigating risks and ethically responsible development of the technology. Siemens Chief Executive Officer Roland Busch last month warned his company would shift AI investments elsewhere unless the rules are changed.

“This is urgently needed to unlock the growth potential of industrial AI made in Europe,” said Sarah Bäumchen, managing director of the German Electrical and Digital Industry Association.

The EU Council presidency and European Parliament negotiators reached a provisional agreement on Thursday to streamline certain rules governing artificial intelligence as part of the block’s AI Act. Engineering equipment makers, for example, are now excluded since they already have to comply with the EU Machinery Regulation, obliging them to assess and address risks associated with autonomous systems.

Siemens, which is prioritizing development of AI applications for industrial processes, warned most of the company’s €1 billion ($1.2 billion) industrial AI investment would flow into the US unless the framework is changed. The company, Germany’s most valuable company, is rolling out a growing suite of products for factory controls, software and automation.

Tech companies including ASML Holding NV and SAP SE last month met with European Commission President Ursula von der Leyen amid concerns from business that the bloc’s competitiveness drive is falling short.

“The EU institutions appear to have sent the right positive signal for a pragmatic and innovation-friendly approach to AI in machinery,” said Hartmut Rauen, who heads VDMA, Germany’s mechanical engineering industry association. “It’s crucial that the interface between the AI Act and machinery safety regulation is clearly defined and doesn’t lead to duplicate regulation.”

Next steps for the proposed rule changes are the European Parliament and Council formally adopting the agreement. Bloomberg