Siemens Threatens to Shift AI Investments to US and China Over EU Regulation

Siemens AG has warned the European Union: do not soften AI regulations — or the largest German industrial conglomerate will redirect its artificial intelligence investments to the United States and China. This was openly stated by the company's chief executive officer, Roland Busch. The statement comes at a moment when the discussion about European economic competitiveness in the age of AI is reaching a critical point.

This is not mere corporate discontent. Siemens invests billions of euros annually in digitalization and industrial AI — its position reflects a growing rift between Europe's technological ambitions and the regulatory climate that the EU is actually creating for business. The conglomerate with revenues exceeding 77 billion euros is one of the largest employers and taxpayers in the region, and its warning carries weight.

The European AI Act — the world's first comprehensive artificial intelligence law — enters into force in phases from 2024 to 2027. The law divides AI systems by risk levels: from completely prohibited practices to high-risk applications in industry, medicine, and transport, which must comply with strict requirements for transparency, mandatory audits, and multi-stage certification. This block irritates Siemens more than anything else.

The company actively implements AI in its products: manufacturing automation systems, smart electrical grids, medical diagnostic equipment, digital factory twins. Most of these directions fall into the high-risk category under the AI Act classification — which means additional compliance costs, lengthy approval procedures, and a real risk of falling behind competitors from the US and China, not burdened by analogous requirements.

The United States and China offer a striking contrast. The American administration consistently curtails restrictive AI initiatives and declares a course toward technological dominance without excessive regulatory pressure on business. China, despite its own AI system requirements, provides industrial companies with access to a giant domestic market, large-scale government support for development, and a high pace of implementation.

Against this backdrop, the European approach is perceived as a structural competitive disadvantage. Siemens is not the first company to publicly criticize the AI Act. Earlier, Meta, several Scandinavian technology companies, and European AI startups voiced similar positions, warning of the risk of technological emigration.

Volkswagen, BASF, and other industrial conglomerates also pointed to regulatory burden as a factor reducing Europe's investment attractiveness.

Busch formulated his position firmly and pragmatically: Siemens will place its investments where it is economically justified. If the EU does not create conditions comparable to those of competitors, capital and expertise will move to where they are welcome. For Europe, this is a critical signal. Industrial AI is not a story about chatbots — it is real competitiveness in manufacturing, healthcare, and energy. If Siemens realizes this threat, the precedent will create a chain reaction. European regulators will need to find a balance between protecting citizens from AI risks and maintaining the region's attractiveness for technological investments — so far, this balance has clearly not been found.