On Tuesday May 20, Frank Melis spoke at a European Parliament hearing on the AI Act, hosted by SME Connect and led by Josianne Cutajar. Fellow experts included Katinka Clausdatter Worsøe (Denmark), Annikka Lemmens (OECD), and Boniface de Champris (IT industry). Frank represents SMRT.BIO, an Associate member of EURASHE.
SMRT.BIO is a platform for growing people and economies at scale and speed. Our approach combines AI with traditional algorithms, and I highlighted the importance of this distinction. Too often, all data-driven technologies are lumped together under the label ‘AI,’ which clouds policy discussions.
I was proud to share that SMRT.BIO is the 2025 recipient of the ISSIP Service Innovation Award. ISSIP.org, a U.S.-based non-profit founded by IBM, HP, Cisco, Meta, and leading universities, recognises breakthrough innovations in platform development. We’ll receive the award in Florida on June 25.
At the chairwoman’s request, I clarified that SMRT.BIO never received public funding. We are entirely privately financed—proof that platform innovation can thrive independently in Europe. Our rapid growth means we welcome any support that accelerates our impact.
I also addressed the broader context of the AI Act. Similar to GDPR, the Act appears to be a defensive regulatory strategy. While celebrated in Europe, GDPR has received mixed reactions abroad. In the U.S., there’s growing resistance to EU-style data protection and AI regulations, particularly within the current geopolitical climate.
A recent example illustrates this tension: Microsoft reportedly blocked the email account of the ICC’s chief prosecutor, effectively stalling the Court’s operations. This case highlights Europe’s vulnerability when relying on non-European infrastructure, and the different values that guide digital policy on both sides of the Atlantic.
Interestingly, we see genuine interest in the AI Act in Africa. Clients ask detailed questions about what LLMs we use and where the data is stored. For companies like SMRT.BIO, transparency and compliance with the AI Act can offer a competitive edge in these markets.
Still, I questioned whether the AI Act delivers a real strategic advantage for Europe. The EU continues spending billions on basic research, valuable, but with long-term returns. At the same time, SMEs and MSMEs are burdened with regulations that are still evolving. For early-stage companies, it’s a choice between investing in compliance or growing their business.
That’s why I proposed greater investment in European platform development. We must act at scale and speed to compete with the U.S. and China. Right now, the AI Act risks consuming both.
I welcomed Katinka’s update on Denmark’s upcoming EU Council presidency from July 1, with its promising theme: “Make EU Simpler.” For SMEs and MSMEs, current regulation—from the AI Act to EDIH, EPR, IPCIE, DEP, and beyond—is fragmented, overly complex, and hard to navigate. As Katinka pointed out, it’s not just overwhelming—it’s also ineffective in boosting Europe’s global competitiveness.
