In an interview with CNBC, Ericsson CEO Börje Ekholm discussed concerns about AI regulation in Europe, emphasizing that regulatory fragmentation is hindering AI adoption and Europe’s competitiveness in the tech sector. He argued for a focus on fostering innovation rather than overregulation, highlighting the importance of AI for Ericsson’s operations and the broader economy.
In an interview with CNBC, Ericsson CEO Börje Ekholm discussed an open letter he co-signed with other European and U.S. CEOs addressing concerns about AI regulation in Europe. The letter highlights the fragmentation of AI regulations, including the AI Act and GDPR, which are interpreted by various agencies, ultimately slowing down AI adoption in Europe. Ekholm emphasized that this issue is part of a larger concern regarding Europe’s competitiveness, as the continent is falling behind the U.S. in terms of GDP and productivity, largely due to a lack of a robust tech sector.
Ekholm explained that AI is a crucial technology for Ericsson, impacting how the company operates networks and manages energy. He noted that AI serves as a productivity booster and is essential for developing new market offerings. The CEO acknowledged that while there is a self-interest aspect in advocating for less regulation, it is also about ensuring that Ericsson can remain competitive in a rapidly evolving tech landscape, especially since a significant portion of their R&D is based in Europe.
The CEO pointed out that both overregulation and regulatory fragmentation are problematic for Europe. He criticized Europe for being a front-runner in regulation without necessarily leading in innovation, suggesting that this approach could hinder long-term prosperity. Ekholm argued that Europe should focus on fostering innovation and creating a unified market rather than prioritizing regulatory measures that may stifle growth and investment in technology.
Ekholm also discussed the broader implications of technology, stating that it is no longer confined to a specific sector but rather influences all areas of the economy. He highlighted the importance of advanced connectivity in various industries, such as automotive and logistics, and how excessive regulation could impede the benefits that technology can bring across the board.
Lastly, the CEO addressed the impact of supply chain disruptions, such as the port strike on the U.S. East Coast, on Ericsson’s operations. He noted that while supply chains are affected, Ericsson is somewhat insulated due to its manufacturing facility in Texas, which produces 5G equipment. However, he acknowledged that over time, such disruptions could still impact the company.