The European Union is pursuing an ambitious digital strategy that also has a significant impact on Switzerland. The latest analysis by the Interdepartmental Coordination Group on EU Digital Policy (IC-EUDP) shows this: While there are currently no immediate risks to access to the single market, new regulations on artificial intelligence, cybersecurity and data management could pose challenges for Swiss companies. How should Switzerland position itself?
The EU’s digital course – what does it mean for Switzerland?
On 13 February 2025, the Interdepartmental Coordination Group on EU Digital Policy (IC-EUDP) published a comprehensive analysis of the impact of European digital policy on Switzerland. The focus is on 33 key EU measures and regulations, including the AI Act, the Data Act and the Cyber Resilience Act. These regulatory projects could not only affect Swiss companies’ access to the EU single market, but also influence existing trade and data protection agreements between Switzerland and the EU.
Overview of key areas of regulation
- AI Act (Ordinance 2024/1689)
The AI Act sets out strict requirements for artificial intelligence, especially for high-risk AI systems. Swiss companies that offer AI-supported products or services in the EU must comply with the new requirements, which means that compliance strategies and risk management systems must be adapted.
- Cyber Resilience Act (Regulation 2024/2847)
For the first time, the EU is introducing a standardised regulation for cybersecurity requirements for digital products. Manufacturers must already take cyber security into account during product development and are obliged to report security incidents. This also affects Swiss companies that offer products on the EU market. Compliance requirements are also increasing here.
- Data Act (Ordinance 2023/2854)
The Data Act regulates fair access to industry data and specifies who may access which non-personal data. For Swiss companies, this means potential adjustments to their data strategy, especially if they are active as data holders or processors in the EU.
Challenges and need for action for Switzerland
The IC-EUDP analysis shows that Switzerland can largely maintain its access to the EU’s internal market despite the regulatory developments. Nevertheless, there are three main challenges that should not be underestimated:
Regulatory pressure and trade barriers
Unless national regulations are harmonised with EU standards, new barriers to market access could arise. In particular, the Mutual Recognition Agreement (MRA) would need to be updated to include additional requirements for AI and cybersecurity products.
Need for a dedicated digital strategy
Switzerland has so far pursued its own digital strategy. In order not to fall behind in international competition, greater harmonisation with European standards would make sense, particularly in the area of AI and data management.
Opportunities for cooperation with the EU
Switzerland could become involved in EU digital research and innovation programmes in order to help shape regulatory developments at an early stage. A stronger institutional link to EU digital initiatives would also strengthen Switzerland’s influence on future regulatory projects.
Swiss AI strategy: missed opportunity or smart pragmatism?
While the EU is creating clear guidelines for the regulation of artificial intelligence with the AI Act, the Federal Council has so far refrained from introducing its own AI legislation (read more in our article here). This cautious stance harbours considerable risks. Without binding rules, it remains unclear which standards Swiss companies will have to comply with in future in order to remain competitive on the EU market. In addition, Switzerland risks losing control over the organisation of the framework conditions for AI applications. Instead of actively developing future-oriented, innovation-friendly regulation, Switzerland remains in a passive observer role – a strategic disadvantage in a rapidly developing technology sector.
Future prospects for Switzerland in the digital era
EU digital policy is developing dynamically and presents Switzerland with new challenges. The analysis shows that there are currently no immediate risks to access to the single market, but that adjustments will be necessary in the long term. Proactive positioning in the areas of artificial intelligence, cybersecurity and the data economy is crucial in order to exploit innovation potential and minimise regulatory hurdles at an early stage.
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