EU aims to balance AI regulation with global competitiveness amid pressures from the U.S. and China. The EU's regulatory-first approach prioritizes ethical values but risks economic growth. Recent initiatives, such as the AI Act and substantial investments in AI, aim to enhance competitiveness while facing challenges like resource dependency and complex legislation. The EU must simplify regulations without compromising human rights to become a leader in ethical AI, attract investment, and sustain its geopolitical influence. However, achieving consensus among member states and securing funding remains critical for successful implementation.
