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November 30, 2025

Regulating what is not created: does Europe risk technological irrelevance?

Europe attracts only one-tenth of global investment in artificial intelligence but claims to dictate global rules. This is the "Brussels Effect"-imposing regulations on a planetary scale through market power without driving innovation. The AI Act goes into effect on a staggered timetable until 2027, but multinational tech companies respond with creative evasion strategies: invoking trade secrets to avoid revealing training data, producing technically compliant but incomprehensible summaries, using self-assessment to downgrade systems from "high risk" to "minimal risk," forum shopping by choosing member states with less stringent controls. The extraterritorial copyright paradox: EU demands that OpenAI comply with European laws even for training outside Europe-principle never before seen in international law. The "dual model" emerges: limited European versions vs. advanced global versions of the same AI products. Real risk: Europe becomes "digital fortress" isolated from global innovation, with European citizens accessing inferior technologies. The Court of Justice in the credit scoring case has already rejected the "trade secrets" defense, but interpretive uncertainty remains huge-what exactly does "sufficiently detailed summary" mean? No one knows. Final unresolved question: is the EU creating an ethical third way between U.S. capitalism and Chinese state control, or simply exporting bureaucracy to an industry where it does not compete? For now: world leader in AI regulation, marginal in its development. Vaste program.