European companies sound alarm on “ticking time bomb” EU AI Act
With compliance costs rising and legal uncertainty mounting, Europe may be losing its shine as a launchpad for Israel's next wave of AI innovation.
A new letter drafted and distributed online has suggested that dozens of Europe’s leading startups and investors are calling for the European Union to pause the rollout of its AI Act, designed to curb the innovation efforts surrounding artificial intelligence. Concerns were raised following a letter penned by founder and former CEO of Stockholm-based healthtech Kry, Johannes Schildt, shortly after Swedish Prime Minister Ulf Kristersson demanded the bloc place a freeze by citing risks to technological progress.
The outbreak of a debate on how the continent will roll out the Act will have implications far beyond the EU. Israeli AI startups, many of which see the bloc as a promising market or R&D partner, are now facing similar concerns. With compliance costs rising and legal uncertainty mounting, Europe may be losing its shine as a launchpad for Israel's next wave of AI innovation.
The letter described the Act as “a rushed ticking time bomb” and urged the bloc to implement “a well-calibrated pause… delivering a workable implementation plan that reinforces Europe’s credibility and competitiveness on the global stage.” It has already been signed by roughly 30 signatories, including Synthesia, Lovable, and…
