EU Pushes Ahead with Landmark AI Rules Amid Industry Pushback

TRENDS Research and Advisory

Artificial Intelligence.

The European Union is pressing ahead with its Artificial Intelligence Act (AI Act) and the Data Act, aiming to establish the world’s first comprehensive legal frameworks for AI governance and data access. Despite pushback from major tech companies, Brussels insists the rollout will continue on schedule.

The AI Act, in force since August 2024, introduces a risk-based approach: AI applications deemed “unacceptable risk” are banned, high-risk systems – such as those used in healthcare, law enforcement, or critical infrastructure – face strict requirements for safety, transparency, and accountability, and lower-risk models are subject to lighter obligations.

As of August 2, 2025, providers of general-purpose AI models, including ChatGPT, must comply with governance rules under the Act. A Code of Practice offers guidance on compliance, while a transparency consultation launched on September 4 seeks public feedback on how to label AI-generated content and inform users when interacting with AI.

Major technology firms, including Meta, Siemens, SAP, and Google, have criticized aspects of the regulations, citing legal uncertainty, competitive disadvantages, and the risk of stifling innovation. Yet the European Commission has reaffirmed its commitment, stating that Europe must “set the global standard for safe and trustworthy AI.”

Meanwhile, the EU Data Act officially came into effect on September 12, 2025, establishing rules for data access, sharing, and portability from connected devices and services. Non-compliance could incur fines of up to €20 million or 4% of global annual turnover, depending on which is higher. Some member states have yet to designate enforcement authorities, raising questions about consistent implementation across the bloc.

Industry reactions remain mixed: while some companies express concern over the complexity of the regulations, others praise the EU for taking a leadership role in ethical AI development and equitable data governance.

The upcoming months will test the EU’s ability to balance robust regulatory enforcement with fostering innovation in a sector dominated by global tech giants.

Sources: European Commission, ComputerWeekly, and Reuters



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