European Union Needs Regulations to Support Technological Advancements, Says Siemens and SAP

Siemens and SAP urge EU to support technological advancements with regulations. SAP, the world's largest software company, is focusing on developing integrated software packages for various industries. The company's revenue is primarily generated from software package sales and consulting services. Geographically, SAP's sales are distributed across Germany, Europe, the US, the Americas, Japan, and Asia/Pacific.

Siemens and SAP have jointly called on the European Union to revise its artificial intelligence (AI) regulations, arguing that the current framework hinders innovation. The CEOs of both companies, Roland Busch of Siemens and Christian Klein of SAP, made their case in an interview with the Frankfurter Allgemeine Zeitung, stating that the EU's AI Act, which became law last year, is stifling technological progress.

The AI Act classifies AI applications into risk categories, with providers required to meet specific security and transparency requirements. However, Busch criticized the Act, claiming that overlapping and sometimes contradictory regulations are hampering progress. He also noted that the EU's Data Act, which sets out obligations on how companies use consumer and corporate data, is "toxic" for developing digital business models.

Klein emphasized that infrastructure shortages are not the main barrier in Europe, and that the focus should be on reforming data rules before investing in data centers. "We are sitting on a treasure trove of data in Europe, but we are not yet able to tap into it," Busch told the newspaper.

The call for reform comes as several companies, including Google owner Alphabet and Facebook owner Meta, have written to Brussels asking for the rules to be postponed. However, Busch declined to sign their letter, stating that the proposal did not go far enough.

SAP, the world's largest software company, is focusing on developing integrated software packages for various industries. The company's revenue is primarily generated from software package sales and consulting services. Geographically, SAP's sales are distributed across Germany, Europe, the US, the Americas, Japan, and Asia/Pacific.

As investors evaluate the potential impact of these regulatory changes, it is essential to consider the broader implications for the tech industry and the European market. The companies' call for reform highlights the need for a more supportive regulatory environment to foster innovation and maintain Europe's competitive edge in the global tech landscape.

References:
[1] https://www.livemint.com/companies/news/siemens-and-sap-call-for-eu-to-revise-its-ai-regulations-faz-11752443251501.html