67% of EU businesses struggle to understand AI Act compliance

Tech lobbying group CCIA Europe, representing major companies including Alphabet, Meta, and Apple, has called on the European Union to pause implementation of the AI Act just weeks before critical provisions take effect. The request comes as more than two-thirds of European businesses report struggling to understand their responsibilities under the landmark legislation, raising concerns that rushed enforcement could stifle innovation across the continent.

What you should know: Key provisions of the EU AI Act, including rules for general purpose AI models, are scheduled to apply on August 2, but critical implementation details remain unpublished.

• Some parts of the general purpose AI regulations that were expected to be published on May 2 have been delayed, leaving businesses without clear guidance.
• “With critical parts of the AI Act still missing just weeks before rules kick in, we need a pause to get the Act right, or risk stalling innovation altogether,” said Daniel Friedlaender, CCIA Europe’s senior vice president.

The big picture: The EU AI Act represents the world’s most comprehensive approach to AI regulation, contrasting sharply with the United States’ voluntary compliance framework and China’s state-controlled model focused on social stability.

• Europe’s landmark AI rules entered into force in June last year with various provisions designed for phased implementation.
• Political leaders, including Swedish Prime Minister Ulf Kristersson, have called the AI rules “confusing” and asked the EU to pause the Act ahead of meetings with other EU leaders in Brussels.

Business concerns: An Amazon Web Services survey reveals widespread confusion among European companies about compliance requirements under the new regulations.

• More than two-thirds of European businesses said they struggle to understand their responsibilities under the EU AI Act.
• The uncertainty comes as companies face imminent deadlines for compliance with general purpose AI model requirements.

What they’re saying: EU officials acknowledge concerns while maintaining commitment to implementation.

• “We are currently implementing the AI Act,” EU tech chief Henna Virkkunen told EU lawmakers earlier this month when asked about a temporary halt to enforcement.
• “I want to implement it in a very innovation friendly manner … the main concern among some stakeholders is that this is hindering innovations,” Virkkunen added.

Why this matters: The debate highlights the challenge of balancing regulatory oversight with innovation in the rapidly evolving AI sector, with potential implications for Europe’s competitiveness in the global AI race.