Why does the EU AI Act generate so much resistance?
The European Commission has just published its first guidelines for the use of general-purpose AI, and far from calming the waters, it has ignited a wave of criticism across startups, big tech, and even governments. At My Tech Plan, we have been analyzing for some time how AI regulation intersects with competitiveness, technological development, and business dynamics. Is Europe about to lose its edge in the global technological race?
The Code of Practice: an attempt to clarify… that ends up confusing
The General Purpose AI Code of Practice, published on July 16, 2025, seeks to guide companies in complying with the AI Act, especially regarding foundation models like LLMs. However, what was supposed to be a bridge towards clearer regulation has ended up being perceived as a bureaucratic labyrinth.
A curiosity: although it is called a “Code of Practice,” compliance will be mandatory for many actors starting in August 2025. The ambiguity of its name has not helped to calm nerves in an ecosystem already living under pressure.
As we pointed out in our analysis article Spain accelerates in AI agents, one of the great challenges for companies is not so much technical development but the ability to move in uncertain regulatory environments where rules change faster than innovation cycles.
Sectoral criticism: legal confusion and fear of losing traction
The rejection has been almost choral. From deep tech startups to multinationals like SAP or Airbus, and organizations like CCIA Europe—which represents Apple, Meta, or Google—criticism focuses on three aspects: lack of legal clarity in the EU AI Act, regulatory overlap with other laws like the Data Act, and a compliance burden that could paralyze innovation.
The Swedish Prime Minister was especially graphic: “it is a legal Frankenstein difficult to implement,” he declared a few weeks ago. In this scenario, it is not surprising that more than 40 large companies have requested a two-year pause before applying the full regulation.
At My Tech Plan, we see this in the tech events we organize, which bring together professionals from different sectors united by technology: legal insecurity not only slows down decisions but also erodes trust in the European ecosystem. Who would want to launch a product with disruptive potential if it’s not clear whether it will be legal in six months?
Conclusion: dilemma and possible solutions
EU AI Act: Are we regulating technology or applications?
The debate is not new, but it has intensified. More and more voices call for regulating uses, not technologies. That is, evaluating risks according to context (education, healthcare, finance…) instead of applying generic rules to all models. This more adaptive logic is already applied in sectors like pharmaceuticals or finance. Why not do the same with AI?
An AI that recommends a playlist should not have to meet the same requirements as one that predicts medical diagnoses, or should it? Not doing so is like requiring the same driver’s license for someone riding an electric bike as for someone piloting a plane.
Talent, data, and worrying fragmentation
Another side effect: talent flight. European engineers are migrating to innovation centers in the USA, Canada, or Asia, where rules are clearer—though not necessarily more lax. The real problem is that the EU is losing not just professionals but also its narrative: it is ceasing to be a place where innovation is designed and becoming a place where it is attempted to be contained.
Furthermore, the risk of internal fragmentation is real. France, Germany, and other countries are developing their own schemes complementary to the EU AI Act, which could generate a “multi-speed Europe” in terms of AI. For a developer, that means more costs, more uncertainty, and fewer incentives to scale from Europe.
| Element | Current Risks | Promoted Alternatives |
|---|---|---|
| Legal complexity | Confusion in companies (especially SMEs) about their obligations | Regulation by application, not by technology |
| Competitiveness | Risk of Europe falling behind the USA and China | Reform of the Data Act; transparency and proportional standards |
| Innovation vs protection | Postponing AI adoption due to legal uncertainty | Clear guides, tactical pauses, practical evaluation |
Is your company ready to lead this wave?
At My Tech Plan, we help organizations stay at the forefront of technological innovation through strategic content, tailored training, and building active communities. If you are exploring how to integrate AI agents into your strategy, we accompany you with fresh ideas, multi-platform formats, and events that connect your team with the latest trends in the sector.
And if you want to discover in depth how these systems are working in practice, we look forward to seeing you at the Gen AI Summit, where we will be sharing real experiences, implementation frameworks, and key technologies.