EU Cuts Tech Regulations to Spur AI Investment, Digital Chief Says
The EU is reducing tech regulations to boost AI investments and competitiveness by scaling back reporting requirements, according to digital chief Henna Virkkunen. This move comes despite US political pressures and criticisms from big tech companies.
Published on April 4, 2025
The European Union is easing several tech regulations as part of an effort to boost AI investment and enhance its competitiveness. Henna Virkkunen, the EU’s digital chief, emphasized that this move aims to support companies by reducing excessive administrative burdens and reporting requirements while maintaining a fair and safe digital marketplace. In a bid to simplify the regulatory landscape, the Commission has withdrawn a planned AI liability directive and is streamlining forthcoming rules under the new AI code of practice.
Recent reports, including one from March 4, 2025, corroborate the EU’s commitment to these reforms. Amid ongoing pressures and criticisms—such as threats from US President Donald Trump and concerns raised by US officials—the EU remains focused on a deregulatory path that balances growth with the protection of its core values. This strategy is intended to allow the bloc to foster innovation while still upholding necessary safeguards where higher-risk AI applications are concerned.