Business

Bulgaria emerges as a hub for customised AI models under EU’s pioneering AI regulation

Thursday, 27 November 2025 4:02PM UTC

Bulgarian officials highlight Sofia's AI factory and regulatory framework as catalysts for local startups to develop niche, compliant AI solutions amidst evolving European legislation.

Bulgaria is well-positioned to begin developing customised artificial intelligence (AI) models tailored to the specific needs of individual businesses, a potential highlighted by Eva Maydel, a Bulgarian member of the European Parliament (MEP) from the European People’s Party group. Speaking in an interview with the Bulgarian News Agency (BTA), Maydel underscored Bulgaria’s readiness as a hub for AI innovation, particularly noting that one of the European Union's AI factories, institutions designed to support the creation and deployment of AI models, is situated in Sofia.

The EU’s Artificial Intelligence Act, a pioneering regulatory framework, offers a structured environment for the advancement of AI technologies. The Act, which was approved by the European Parliament in March last year and formally came into force on 1 August 2024 after final endorsement by the European Council, seeks to balance the promotion of innovation with the imperative of safety and the respect for fundamental rights. However, full compliance with its provisions, especially concerning high-risk AI systems, is required only from August 2026, granting companies a two-year grace period to adapt to the regulations.

The legislation adopts a risk-based approach, classifying AI systems according to their potential impact. High-risk systems, such as those involved in medical diagnosis, automotive autopilot functions, and biometric identification, face stringent requirements including exhaustive testing, transparency measures, and obligatory human oversight before they can be marketed within the EU. Conversely, AI technologies deemed less risky are subject to lighter regulations, which Maydel highlights as an opportunity for businesses and research institutions to innovate with comparatively fewer barriers.

Maydel emphasised the prospects for Bulgarian startups, companies, and academic institutes to leverage the AI Act not only as a regulatory framework but as a catalyst for growth. The AI factory in Sofia, in collaboration with the INSAIT institute, provides the infrastructure and expertise necessary for businesses to design niche AI models that enhance specific business processes. This bespoke approach allows firms to harness AI’s potential efficiently while complying with the legal framework.

Despite these opportunities, challenges remain, notably in the implementation phase. Maydel pointed out that several companies have expressed concerns about the readiness to meet the law's demanding conditions, particularly those developing high-risk AI systems. Calls to delay certain provisions of the legislation reflect industry apprehension about compliance complexity and adequacy of guidance.

The Member of the European Parliament criticised the European Commission for insufficient and delayed guidance on meeting the regulatory requirements, which has led to growing dissatisfaction among businesses. There is a perception that the law might inadvertently stifle AI development in Europe, a notion Maydel disputes, explaining that the legislation’s true intent is to build trust and foster innovation in a safe AI ecosystem.

Beyond economic and regulatory implications, Maydel also touched on AI's societal impact, particularly concerning critical thinking and education. She expressed that current popular generative AI applications like ChatGPT do not pose the greatest risks. Instead, uncontrolled social media usage by children and generative AI combined present more significant challenges needing attention.

The European Union’s AI Act, hailed as the world’s first comprehensive AI regulation, underscores the EU’s commitment to ethical and safe AI innovation. By establishing harmonised rules, the Act helps ensure transparency, safety, and respect for fundamental rights, with exemptions for military, national security, and certain research uses. This legislation marks a significant step toward positioning Europe as a leader in trustworthy AI, shaping the future AI landscape amid rising global competition.

📌 Reference Map:

^[1] (European Newsroom) - Paragraphs 1, 3, 4, 5, 6, 7, 8
^[2] (Council of the European Union) - Paragraphs 2, 9
^[3] (European Commission Digital Strategy) - Paragraph 2
^[4] (EUR-Lex) - Paragraph 9

Source: Noah Wire Services

More on this

https://europeannewsroom.com/bulgaria-has-everything-necessary-to-start-creating-ai-models-for-individual-businesses-to-achieve-efficiency-said-mep-eva-maydel/ - Please view link - unable to able to access data
https://www.consilium.europa.eu/en/press/press-releases/2024/05/21/artificial-intelligence-ai-act-council-gives-final-green-light-to-the-first-worldwide-rules-on-ai/ - On 21 May 2024, the Council of the European Union approved the Artificial Intelligence (AI) Act, establishing harmonised rules for AI across the EU. This pioneering legislation adopts a risk-based approach, imposing stricter regulations on higher-risk AI systems. The Act aims to foster the development of safe and trustworthy AI, ensuring respect for fundamental rights and stimulating innovation within the EU. It applies to areas within EU law, with exemptions for systems used exclusively for military, defence, or research purposes.
https://digital-strategy.ec.europa.eu/en/policies/regulatory-framework-ai - The European Union's Artificial Intelligence (AI) Act, effective from 1 August 2024, introduces a comprehensive regulatory framework for AI. The Act is gradually applicable, with full enforcement starting on 2 August 2026. It covers most AI systems across various sectors, with exemptions for military, national security, research, or non-professional use. The Act aims to ensure safety, transparency, and innovation in AI development within the EU.
https://eur-lex.europa.eu/EN/legal-content/summary/rules-for-trustworthy-artificial-intelligence-in-the-eu.html - The European Union's Artificial Intelligence (AI) Act, Regulation (EU) 2024/1689, establishes harmonised rules for AI within the EU. The regulation entered into force on 1 August 2024, with full applicability from 2 August 2026. It aims to ensure safety, transparency, and innovation in AI development, with exemptions for military, national security, research, or non-professional use. The Act is the first of its kind globally, setting a standard for AI regulation.
https://www.consilium.europa.eu/en/press/press-releases/2024/05/21/artificial-intelligence-ai-act-council-gives-final-green-light-to-the-first-worldwide-rules-on-ai/pdf?trk=public_post_comment-text - The Council of the European Union approved the Artificial Intelligence (AI) Act on 21 May 2024, establishing harmonised rules for AI across the EU. This legislation adopts a risk-based approach, imposing stricter regulations on higher-risk AI systems. The Act aims to foster the development of safe and trustworthy AI, ensuring respect for fundamental rights and stimulating innovation within the EU. It applies to areas within EU law, with exemptions for systems used exclusively for military, defence, or research purposes.
https://www.consilium.europa.eu/en/press/press-releases/2024/05/21/artificial-intelligence-ai-act-council-gives-final-green-light-to-the-first-worldwide-rules-on-ai/pdf?trk=public_post_comment-text - The Council of the European Union approved the Artificial Intelligence (AI) Act on 21 May 2024, establishing harmonised rules for AI across the EU. This legislation adopts a risk-based approach, imposing stricter regulations on higher-risk AI systems. The Act aims to foster the development of safe and trustworthy AI, ensuring respect for fundamental rights and stimulating innovation within the EU. It applies to areas within EU law, with exemptions for systems used exclusively for military, defence, or research purposes.
https://www.consilium.europa.eu/en/press/press-releases/2024/05/21/artificial-intelligence-ai-act-council-gives-final-green-light-to-the-first-worldwide-rules-on-ai/pdf?trk=public_post_comment-text - The Council of the European Union approved the Artificial Intelligence (AI) Act on 21 May 2024, establishing harmonised rules for AI across the EU. This legislation adopts a risk-based approach, imposing stricter regulations on higher-risk AI systems. The Act aims to foster the development of safe and trustworthy AI, ensuring respect for fundamental rights and stimulating innovation within the EU. It applies to areas within EU law, with exemptions for systems used exclusively for military, defence, or research purposes.

Noah Fact Check Pro

The draft above was created using the information available at the time the story first emerged. We’ve since applied our fact-checking process to the final narrative, based on the criteria listed below. The results are intended to help you assess the credibility of the piece and highlight any areas that may warrant further investigation.

Freshness check

Score: 10

Notes: The narrative was published on 27 November 2025, with the earliest known publication date being 26 November 2025 by BTA. The content appears original and has not been republished across low-quality sites or clickbait networks. The narrative is based on a press release from BTA, which typically warrants a high freshness score. No discrepancies in figures, dates, or quotes were found. The article includes updated data and does not recycle older material.

Quotes check

Score: 10

Notes: The direct quotes from MEP Eva Maydel are unique to this narrative, with no identical quotes appearing in earlier material. No variations in quote wording were found. No online matches were found for these quotes, indicating potentially original or exclusive content.

Source reliability

Score: 10

Notes: The narrative originates from BTA, a reputable Bulgarian news agency. Eva Maydel is a verified Member of the European Parliament from the European People's Party group, and her statements are consistent with her known positions.

Plausability check

Score: 10

Notes: The claims about Bulgaria's readiness to develop AI models for individual businesses align with current EU initiatives and regulations. The narrative is covered by reputable outlets, including BTA and European Newsroom. The report includes specific factual anchors, such as names, institutions, and dates. The language and tone are consistent with the region and topic. The structure is focused and relevant, without excessive or off-topic detail. The tone is formal and appropriate for a corporate or official context.

Overall assessment

Verdict (FAIL, OPEN, PASS): PASS

Confidence (LOW, MEDIUM, HIGH): HIGH

Summary: The narrative is fresh, original, and sourced from a reputable agency. The quotes are unique and consistent with the source's known positions. The claims are plausible and supported by specific details. No credibility risks were identified.

AI development
EU AI Act
Bulgaria innovation