Why is the US following the EU’s lead on artificial intelligence regulation?

In the intensifying race for global competitiveness in artificial intelligence (AI), the United States, China and the European Union are vying to be the home of what could be the most important technological revolution of our lifetimes. AI governance proposals are also developing rapidly, with the EU proposing an aggressive regulatory approach to add to its already-onerous regulatory regime.

It would be imprudent for the U.S. to adopt Europe’s more top-down regulatory model, however, which already decimated digital technology innovation in the past and now will do the same for AI. The key to competitive advantage in AI will be openness to entrepreneurialism, investment and talent, plus a flexible governance framework to address risks.

The International Economyjournal recently asked 11 experts from Europe and the U.S. where the EU currently stood in global tech competition. Responses were nearly unanimous and bluntly summarized by the symposium’s title: “The Biggest Loser.” Respondents said Europe is “lagging behind in the global tech race,” and “unlikely to become a global hub of innovation.” “The future will not be invented in Europe,” another analyst concluded.

This bleak assessment is due to the EU’s risk-averse culture and preference for paperwork compliance over entrepreneurial freedom. After the continent piled on layers of data restrictions beginning in the mid-1990s, innovation and investment suffered. Regulation grew more complex with the 2018 General Data Protection Regulation (GDPR), which further limits data collection and use.

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