EU AI rules are too stifling, Capgemini CEO warns

The European Union‘s AI Act, touted as the world’s most comprehensive AI regulation, has drawn criticism from industry leaders who argue it may hinder technological deployment and innovation. Capgemini, one of Europe’s largest IT services companies, has partnerships with major tech firms and serves clients like Heathrow Airport and Deutsche Telekom.

Executive perspective: Capgemini CEO Aiman Ezzat has voiced strong concerns about the EU’s approach to AI regulation, describing the lack of global standards as “nightmarish” for businesses.

• Ezzat believes the EU moved “too far and too fast” with AI regulations
• The complexity of varying regulations across different countries creates significant operational challenges for global companies
• These comments come ahead of the AI Action summit in Paris, where policy frameworks will be a key topic of discussion

Regulatory landscape: Recent developments highlight the growing tension between regulation and innovation in the AI sector.

• Former U.S. President Donald Trump‘s revocation of Biden’s 2023 executive order on AI risks marks a significant shift in U.S. policy
• European data protection authorities are actively investigating potential privacy violations by AI companies
• The EU’s AI Act implementation will span several years, but authorities are already taking preventive measures

Chinese competition: The emergence of DeepSeek, a Chinese AI startup, has introduced new dynamics to the global AI landscape.

• DeepSeek has demonstrated capabilities comparable to U.S. industry leaders at significantly lower costs
• Multiple European data protection bodies have launched inquiries into DeepSeek’s operations
• While DeepSeek promotes open-source access, Ezzat notes that transparency remains limited, particularly regarding training datasets

Business implications: Capgemini’s approach to new AI technologies reflects the careful balance companies must strike between innovation and compliance.

• The company has begun exploring DeepSeek’s models with clients, though these discussions are in preliminary stages
• The absence of unified global standards creates operational complexities for multinational companies
• Companies must navigate varying regulatory requirements across different jurisdictions

Strategic considerations: The emerging tension between rapid AI advancement and regulatory oversight suggests a complex path forward for global AI development and deployment.

The diverse regulatory approaches across regions could lead to fragmented AI development landscapes, potentially affecting global competitiveness and innovation. This situation may prompt calls for more harmonized international standards while maintaining appropriate safety and ethical guidelines.