Bosch CEO Stefan Hartung has issued a stark warning to European policymakers, cautioning that excessive and ambiguous regulation is threatening to erode Europe’s competitive edge in the rapidly advancing field of artificial intelligence.

Bosch — which holds the highest number of AI patents in Europe — is planning to invest an additional €2.5 billion in AI technologies by the end of 2027. The funds will be directed toward innovations in autonomous driving, industrial automation, and other smart technologies.

But Hartung says that even such substantial investments may not be enough if Europe continues down a regulatory path he describes as stifling.

“Europe is unnecessarily delaying its AI future with excessive regulation,” said Hartung, calling on EU lawmakers to focus on creating clear, focused guidelines rather than overcomplicated legislative frameworks.

“We will regulate ourselves to death if we try to legislate against technological progress,” he warned.

Competitive Pressures Mount

Hartung's comments come amid escalating global competition in AI development. In January, former U.S. President Donald Trump announced a $500 billion private sector commitment to AI infrastructure in the United States — a move that intensified pressure on other global powers to act swiftly and decisively.

The European Union responded with a proposed €200 billion AI investment plan, aiming to accelerate innovation across member states. Still, industry leaders like Bosch argue that money alone is not enough if policy environments become deterrents to innovation.

Regulatory Landscape: A Double-Edged Sword?

Europe has taken a cautious and ethics-driven approach to AI, culminating in the EU AI Act, which seeks to impose strict oversight on high-risk AI systems. While this aims to ensure safety and accountability, critics say the vague definitions and complex compliance burdens risk chasing away talent and investment.

For Bosch, whose AI efforts span smart mobility, manufacturing, and consumer electronics, the concern is practical. According to Hartung, Europe's bureaucratic hurdles are making the continent less attractive for long-term AI development — especially when compared to more agile and innovation-friendly environments in North America and Asia.

A Call for Smarter Regulation

Hartung is not advocating for a regulatory free-for-all, but rather a streamlined framework that targets key risks such as data misuse, algorithmic bias, and safety in high-stakes applications. By focusing on essentials and leaving space for experimentation and iteration, Europe could better balance ethical oversight with global competitiveness.

“Legislators should concentrate on the most important points,” Hartung said. “We need a legal structure that allows innovation to breathe.”

With its planned €2.5 billion AI investment, Bosch aims to remain at the forefront of European tech — but it’s clear that even industry leaders feel constrained by current regulatory trends. As Europe strives to shape a responsible AI future, voices like Hartung’s underscore the growing tension between innovation and intervention.

Whether policymakers heed the call remains to be seen, but the message from Europe's largest industrial players is clear: without smarter regulation, Europe could lose its lead in one of the most transformative technologies of the 21st century.