Regulation must not become a moat for large corporations.
Proportional requirements for SMEs, regulatory sandboxes and clear deadlines. Switzerland has the opportunity to develop a leaner regulatory approach than the EU -- and to demonstrate how it can be done better.
The EU AI Act is the world's first comprehensive AI law. It classifies AI systems by risk level and requires extensive documentation, conformity assessments and ongoing monitoring for high-risk systems [1].
The intention is correct. The impact could be fatal:
The EU invests around 1 billion euros per year in AI research. The USA invests over 60 billion dollars (private and public). China invests comparable sums [3]. If Europe channels its limited resources into compliance rather than innovation, it will become a regulated desert with imported technology.
Not every AI system needs the same regulation. A chatbot for a bakery is not a medical diagnostic system. Switzerland should introduce a tiered model:
| Risk Level | Examples | Requirements |
|---|---|---|
| Minimal | Chatbots, recommendation systems, spam filters | Labelling as AI, no further obligation |
| Low | AI in marketing, logistics, customer service | Documentation, complaints mechanism |
| High | Medicine, justice, credit decisions, law enforcement | Full conformity, independent audit |
| Prohibited | Biometric mass surveillance, social scoring | Absolute ban |
Regulatory sandboxes are protected environments in which start-ups and research institutions can test AI systems without having to meet all regulatory requirements immediately. The Swiss Financial Market Supervisory Authority FINMA has operated a fintech sandbox since 2019 -- the same model can be applied to AI [4].
Advantages:
Regulatory procedures must be time-limited. If an authority does not decide within 90 days, the approval is deemed granted (deemed approval). This prevents innovation from dying in bureaucratic queues.
Switzerland has held a top position in the Global Innovation Index for years [5]. This lead is not a law of nature -- it must be defended. The combination of excellent research (ETH, EPFL), strong patent protection, a stable legal order and pragmatic regulation is a competitive advantage that no other country offers in this form.
AI regulation that stifles innovation would destroy this advantage. AI regulation that addresses risks while maintaining freedom would strengthen it.
[1] EU AI Act, Regulation EU 2024/1689.
[2] AlgorithmWatch, Compliance Costs of the EU AI Act: Initial Estimates, 2024.
[3] Stanford HAI, AI Index Report 2024: Global AI Investment Trends.