When regulation becomes an obstacle: the risks of paralyzing innovation in the name of compliance

During the global race for leadership in artificial intelligence, Europe decided to accelerate first in regulatory requirements. It happens that, with the promulgation of the European Union AI Law, companies from all sectors have been faced with a new set of obligations that should come into force as early as next month.
But now, giants such as Airbus, ASML, Mercedes-Benz and Mistral have joined in a public appeal: they want the European Commission to pause the full application of the rules for two years.
The argument is straightforward: In the midst of regulatory complexity and overlapping legislation, ranging from data protection to algorithm governance, the industry fears not being able to keep up with the speed required to compete with the United States and China. The request for a two-year suspension is not about neglecting safety, but about adjusting the pace of regulation so as not to stunt innovation in full “birth”.
The dilemma: too much control, less innovation
This debate exposes a tension that every modern company faces: how to adopt new technologies with speed without crossing the line of irresponsibility. The problem is that when control is too much ahead of experimentation, the ecosystem innovates less. If the rules arrive before the technical maturation and social understanding of the impact of AI, the direct consequence is a more stalled market, stifled startups and an innovation cycle that moves to other continents.
At the end of the day, the fear of making mistakes with AI can make companies stop testing, launching and daring. The paradox is clear: the more security you seek via regulation, the more innovation is pushed underground or out of jurisdiction.
Freedom with responsibility
The message behind the appeal of European big techs is legitimate. Innovation needs freedom, space to err, adjust and grow. But that doesn't mean accepting chaos or taking unnecessary risks. It means recognizing that the balance between speed and responsibility does not come from an external regulator, but from a strong organizational culture, supported by true technology.
Companies that want to grow with AI need partners that understand this context and offer solutions that enable, not limit.
The role of information security: not to burden, but to enable
At Vennx, we believe in another way. A path where information security does not stifle innovation, but allows it to gain scale with consistency and responsibility. Instead of waiting for the regulator to define the boundaries, we use data and access governance as an enabling structure. AI cannot be a neutral field; it needs limits. And these should not be imposed only from the outside in..
If your organization is facing the challenge of climbing safely, talk to us. We're ready to show that AI and compliance can — and should — walk together.
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