Germany's Merz Calls for Lighter EU Rules on Industrial AI

German Chancellor Friedrich Merz said that artificial intelligence used in industrial settings should face less strict regulation in the European Union to support productivity and efficiency, reports Reuters.

Speaking at the Hannover Messe industrial fair, Merz stated that he would push to ease the regulatory burden on AI in the EU and, where possible, exempt industrial AI from what he described as an overly tight regulatory framework. He said that AI could improve efficiency, optimize resource use, and reduce costs across manufacturing sectors.

Germany aims to strengthen its position in global AI development, where it competes with the United States and China. The government recently set plans to encourage investment that would expand national AI data processing capacity at least fourfold by 2030.

Merz’s comments come as policymakers across the bloc continue to debate how to balance innovation with oversight under the EU’s AI Act, which is expected to take full effect in 2026. His remarks reflect growing calls for regulatory flexibility for industrial applications within the European Union.