Introduction

At the Bosch ConnectedWorld conference in Stuttgart on June 25 2025, Bosch CEO Stefan Hartung warned that Europe is “regulating itself to death” on artificial intelligence.reuters.com

“Europe is unnecessarily delaying its AI future with excessive regulation,” Hartung said, urging lawmakers to favor a light-touch framework. Bosch, the continent’s top AI-patent holder, plans €2.5 billion in new AI investment by 2027—but only if Europe remains globally competitive.reuters.com

The comments come as the EU finalizes its landmark AI Act. Critics argue that the legislation’s complexity could slow product cycles and encourage talent to leave the country.

Why it matters now

• The AI Act is weeks from a final vote.
• European firms fear talent and capital flight to the U.S. and Asia.
• Hartung’s speech amplifies industry concerns that policy may strangle innovation.

Call-out: Regulation risk becomes a boardroom KPI

Bosch now tracks “reg-drag”—added cost and delay from compliance—projecting a 20 % hit to AI project velocity if rules stay unchanged.

Business implications

• Automotive & industrial timelines for autonomous and smart-factory tech could stretch
• Startups might incorporate outside the EU to dodge certification costs.
• VCs will price regulatory friction into valuations, widening Europe’s funding gap.

Tech lobby groups echoed Hartung, requesting sandbox exemptions and faster conformity checks. Privacy advocates counter that strong guardrails are essential.

Looking ahead

EU lawmakers vote on the AI Act next month. Key flashpoints: mandatory source-code audits for foundation models and Tier-I risk definitions. Hartung hinted Bosch may shift deployments to the U.S. if compliance proves “unworkable.”

IDC forecasts that by 2029, 40 % of European AI startups could relocate R&D outside the EU unless pathways are streamlined.

The upshot: Hartung’s warning isn’t just lobbying—it spotlights the tension between protection and progress. Europe now faces a choice: foster innovation or risk becoming an AI consumer rather than a creator.

––––––––––––––––––––––––––––
Source: Reuters, “Bosch CEO warns Europe against regulating ‘itself to death’ on AI,” June 25 2025.

---