Key Points
- SAP’s CEO, Christian Klein, says Europe is hurting its AI competitiveness with excessive regulation.
- He argues that Europe regulates new tech too early, which prevents it from growing.
- He advises Europe to focus on its own strengths, such as applying AI to its automotive and manufacturing industries.
- Klein believes Europe shouldn’t just try to copy the AI strategies of the U.S. and China.
The head of one of Europe’s biggest tech companies, SAP, says the continent is falling behind in the global artificial intelligence race due to excessive red tape. Speaking at a conference on Thursday, CEO Christian Klein warned that Europe “stands in its own way” by trying to over-regulate new technology before it has a chance to grow.
While the U.S. and China are pouring money into AI, Klein argued that Europe is bogging down innovation. “We need more Europe, but we need a united Europe. We need much less regulation,” he said. His main point is that early-stage AI needs room to breathe and scale up before the government imposes strict compliance rules.
Instead of trying to copy the strategies of the U.S. or China by just building massive data centers, Klein said Europe should focus on its unique strengths. He pointed to the continent’s deep talent pool and powerful industries, such as automotive and manufacturing. He believes Europe should concentrate on developing specialized AI for these sectors, where it already has the expertise and valuable data.
His comments come at a critical time, as officials in Brussels are currently revising their landmark Artificial Intelligence Act.
The European Commission has already proposed delaying enforcement of the law’s strictest rules, covering sensitive areas such as biometric ID and job applications, until late 2027. This suggests that lawmakers may be listening to concerns from industry leaders like Klein about moving too fast.
