The signatories, including prominent tech leaders, urge EU member states to join Sweden in delaying the implementation of the AI Act until a workable plan is established.

They argue that a pause is necessary to develop an effective implementation strategy that enhances Europe's global competitiveness rather than rushing into potentially harmful regulations.

Johannes Schildt, founder of healthtech company Kry, initiated a letter advocating for a pause on the enforcement of the EU's AI Act, following a similar call from Swedish Prime Minister Ulf Kristersson.

Dozens of leading startups and investors in Europe are supporting this call to halt the AI Act's implementation, which began rolling out in 2024 and is set to be enacted over two years.

The urgency for this pause is driven by the lack of clarity in the regulatory framework, particularly regarding the unfinished Code of Practice on General-Purpose AI Models.

Experts warn that without a harmonized approach, divergent rules across member states could disrupt the single market and impose costly compliance burdens.

Major European companies have expressed concerns about regulatory uncertainty, especially when compared to clearer frameworks in the US, UK, and Asia, which may drive AI innovation away from Europe.

While larger companies may manage compliance costs, smaller startups could face significant challenges, potentially harming competition and innovation in the European AI sector.

Julia Elf, cofounder of Elfcare, highlighted that the current wording of the Act pressures startups, which may lack the resources for compliance, stifling innovation.

The consequences of hastily implementing the AI Act could lead to Europe falling behind in technology, with certain AI applications becoming unavailable in the European market.

Industry leaders are negotiating a 'code of practice' for generative AI, with a draft expected soon, despite the looming enforcement deadlines.

Support for Schildt's letter includes nearly 30 industry leaders, such as Lovable cofounder Anton Osika and 20VC founder Harry Stebbings, underscoring widespread concern within the industry.