The European Union’s AI Act (AIA) is a landmark regulatory framework aimed at shaping the development and deployment of artificial intelligence within the EU’s digital economy. While much debate has centred on its legal provisions and economic implications, less attention has been paid to how businesses interpret the AIA’s scope and objectives or how they adapt their compliance strategies in response. Yet, it is in corporate decision-making that the Act’s real impact will take shape.
German enterprises that develop or deploy AI face multiple challenges, from interpreting risk classifications to managing compliance costs in an increasingly complex regulatory environment. The AIA does not exist in isolation; its overlap with frameworks like the GDPR creates uncertainty about enforcement and obligations. Moreover, recent developments—such as the withdrawal of the AI Liability Directive—signal potential shifts in regulatory priorities. While such moves could be framed as fostering European competitiveness, they may also indicate growing industry influence over AI regulation, raising concerns about regulatory capture. If businesses anticipate that regulatory stringency will weaken over time, they may adopt only minimal compliance measures rather than fully integrating the AIA’s principles.
This paper investigates how German businesses perceive the AIA’s goals and how they strategize compliance in the context of possible deregulation. Using semi-structured interviews with compliance officers, AI developers, and policy consultants, it explores how firms navigate regulatory uncertainty, balance innovation with legal constraints, and interpret shifting policy signals. The study aims to uncover whether businesses see the AIA as a necessary safeguard for responsible AI development or a constraint on competitiveness and whether early signs of deregulation are already influencing compliance behaviour.
By analysing these dynamics, this research contributes to the broader discussion on the effectiveness of AI regulation and the risk of industry-driven regulatory capture in the EU.
