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JAN 17, 2025 | EUROPEAN UNION | EUROPE, MIDDLE EAST AND AFRICA

BSA Leads Industry Call for EU to Prioritize Innovation in AI Regulation

BRUSSELS — The Business Software Alliance (BSA), alongside seven other leading industry organizations, raises strong concerns about the European Union’s current approach to artificial intelligence (AI) regulation which risks sidelining Europe in the global race for AI leadership.

The adoption of the EU AI Act, in August 2024, was a major milestone. However, as its implementation begins, BSA and its partners are sounding the alarm over duplicative regulations, overreach, and rushed processes that could slow down EU innovation and competitiveness. In a joint statement published today, the organizations highlight concerns about additional proposals like the AI Liability Directive, which adds unnecessary layers of complexity, and the expansion of the Code of Practice for General-Purpose AI beyond the Act’s intended scope, particularly in areas such as copyright, as well as the CoP rushed process.

The group also points to broader structural issues. Europe’s investment in AI research and innovation is falling far behind global competitors, with an annual gap of €270 billion compared to the United States. Without stronger support for infrastructure, funding, and incentives, Europe risks challenges in keeping pace with global advancements in AI.

“Europe risks being left behind in the AI race,” BSA and its partners warn. “Its ambition to retain and strengthen its role as an AI global leader is going to be undermined by these concerning trends of increased regulatory burden and fast-track adoption of secondary legislation.”

The full statement outlining the organizations’ concerns and recommendations is available here.

ABOUT BSA

The Business Software Alliance (www.bsa.org) is the global trade association of the enterprise software industry, representing companies that are leaders in artificial intelligence, cybersecurity, cloud computing, and other cutting-edge technologies. We work in over 20 markets in the US, Europe, and Asia, advocating for policies that build trust in technology so that every industry sector and the public can benefit from innovation. BSA also supports its members and their customers by raising awareness of the risks of unlicensed software use and the benefits of software asset management, driving license compliance and software adoption around the world through sound IT procurement.

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