CEO of Europe's second most-valuable technology company has ‘warned’ EU on AI regulation

Another top tech company executive has warned the European regulators over the regulation of AI technology, saying that with the regulation, the block risks falling behind the US and China in the AI sector. Christian Klein, the CEO of German tech giant SAP, advised that Europe should focus its attention on the results of AI technology.
Talking to CNBC, Klein said while it is important to curb the risks associated with AI, regulating the technology while it’s still in its infancy would be misguided.
“It’s very important that how we train our algorithms, the AI use cases we embed into the businesses of our customers — they need to deliver the right outcome for the employees, for the society,” Klein was quoted as saying.
“If you only regulate technology in Europe, how can our startups here in Europe, how can they compete against the other startups in China, in Asia, in the US?” Klein added.
“Especially for the startup scene here in Europe, it’s very important to think about the outcome of the technology but not to regulate the AI technology itself.”
SAP recently surged to become Europe's most valuable tech company, surpassing ASML Holding NV. At the time of writing, ASML has surged past SAP. SAP’s rise is fueled by soaring demand for SAP's cloud-based solutions and AI applications. The company recently announced a restructuring plan to further integrate AI into its software offerings.

The comments from SAP CEO came after Ericsson CEO Borje Ekholm joined forces with over 40 prominent tech executives and researchers, including Mark Zuckerberg of Meta and Daniel Ek of Spotify, to express serious concerns about the European Union's approach to AI regulation.
In an open letter, they argue that the EU's fragmented and inconsistent rules are hindering innovation and economic growth within the bloc. The letter stated that Europe “has become less competitive and less innovative compared to other regions” due to “inconsistent regulatory decision making”.
“This means the next generation of open source AI models, and products, services we build on them, won’t understand or reflect European knowledge, culture or languages,” the letter read.