Germany’s new Federal Minister for Digital Transformation, Dr Karsten Wildberger, has warned that the EU AI Act risks undermining innovation by introducing regulation too early—before a strong European AI market has had a chance to form. Speaking to the Financial Times, Wildberger said the Act could deter companies from developing and scaling AI in Europe, calling for a more flexible, enabling approach.
His comments reflect growing unease that Europe’s ambition to lead in AI may be compromised by regulatory overreach. While safety and ethical standards are essential, Wildberger argues that policy must not impose burdens that stifle experimentation and growth.
Similar concerns are surfacing in the UK. Christian de Vartavan, CEO of a London blockchain firm, said that despite strong rhetoric from the Department for Science, Innovation and Technology (DSIT), government policy remains too rigid and narrowly defined. He revealed that his award-winning blockchain technology is being trialled in the US—not the UK—due to restrictive funding frameworks at home.
De Vartavan described the current UK funding landscape as a “straitjacket” that fails to support innovators working at the cutting edge. He called for more pragmatic, responsive policies to allow domestic tech talent to scale without being pushed overseas.
The appointment of Liz Kendall as Secretary of State for DSIT in September 2025 was welcomed by the Campaign for Science and Engineering as a positive step. Her elevation to the cabinet signals political commitment, but meaningful reform will be needed to deliver results.
The message from industry is clear: without a regulatory environment that balances risk with opportunity, Europe and the UK risk falling behind. Effective governance must support safe, ethical AI while creating space for bold innovation.
The solution lies in adaptive regulation and flexible funding—tools that encourage experimentation within trusted boundaries. With the right strategy, the UK and Europe can foster homegrown innovation and set global standards for responsible AI development.
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