Zach Helzer
Senior Director, Europe
Head, U.S.-UK Business Council
Published
June 06, 2025
At today's Telecommunications Council meeting, Poland will formally propose a “stop-the-clock” mechanism to delay the implementation of the EU AI Act. The U.S. Chamber of Commerce strongly supports the delay.
The AI Act, while well-intentioned, is not ready. Its language is overly broad, its obligations are unclear, and its compliance demands are already penalizing developers and small businesses. At a critical moment for European competitiveness, the Act risks doing more harm than good.
The AI Act Is Not Fit for Implementation
The AI Act’s obligations are set to begin taking effect in the coming months. But the regulatory framework is still incomplete:
- The European AI Office , responsible for coordination and oversight, is not yet fully operational.
- National supervisory authorities remain underdeveloped.
- Sector-specific guidance is still being drafted.
- The Code of Practice for GPAI , a key compliance tool, is delayed and lacks legal clarity.
But the problem isn’t just timing, it’s substance. The Act’s language is vague in critical areas, including definitions of high-risk systems, documentation requirements, and obligations for general-purpose AI. This creates legal uncertainty for companies trying to comply in good faith.
Compliance Costs Are Blocking Innovation
According to the EU’s own impact assessment, small firms developing high-risk AI systems could face:
- €300,000–€400,000 in initial compliance costs
- €29,277 in annual recurring costs per system
For many small businesses, these costs make compliance impossible. The result is a chilling effect on innovation, particularly among startups and SMEs that are essential to Europe’s broader economic growth.
The Act Penalizes American Developers Europe Relies On
The AI Act places the heaviest compliance burdens on developers of general-purpose AI systems. These are the very technologies that power downstream innovation across sectors, from healthcare to manufacturing to education.
And most of these models are developed by American companies. Europe’s digital sector depends on them. Penalizing their developers risks cutting off access to the tools European businesses need to compete and grow.
Europe’s Innovation Gap Is Widening
Only 13.5% of EU enterprises used AI in 2024, according to Eurostat. In contrast:
- 98% of U.S. small businesses use at least one AI-enabled tool
- 40% use generative AI, nearly double the rate from the previous year
Europe’s digital sector already faces structural challenges: limited access to capital, fragmented markets, and difficulty scaling. The AI Act, as currently designed, adds another layer of burden, further stifling growth and competitiveness.
The Chamber strongly supports a delay. The AI Act must support Europe’s economic growth, foster innovation, and ensure legal certainty for all.
About the authors
Zach Helzer
Zach Helzer serves as Senior Director in the Europe Program and Head of the U.S.-U.K. Business Council at the U.S. Chamber of Commerce.
Abel Torres
Abel Torres serves as Executive Director in the Center for Global Regulatory Cooperation (GRC) at the U.S. Chamber of Commerce.
