Overview
- Trilogue negotiators on the EU’s Digital-Omnibus, a package to streamline digital laws, remain split over whether to ease AI Act rules for industrial uses, with member states and the European Commission rejecting the European Parliament’s carve-out plan.
- The Parliament proposes shifting factory AI into existing sector laws such as machinery and medical devices to stop double regulation, while capitals favor one cross-cutting rulebook that keeps the horizontal AI Act in place.
- Supporters of broader relief cite estimates that small and mid-sized firms face up to €600,000 in initial compliance costs and €150,000 each year after, which they argue could deter AI projects and weaken Europe’s position.
- German leaders increased pressure at Hannover Messe, with Chancellor Friedrich Merz urging easier EU rules for industrial AI and Economy Minister Katherina Reiche calling AI a survival chance for industry and pushing to free up industrial data for model training.
- On-the-ground adoption adds urgency, as a Cisco study reports about 65% of German industrial firms already use AI and pilots show cost savings in areas like tool life planning, yet many solutions remain prototypes and SMEs still need skills and budget to comply.