EU AI Act Could Limit Competition
Summary
On October 6, 2023, a leaked analysis by the U.S. State Department of the emerging EU AI Act revealed the U.S. concern that the EU’s proposed law may favor entrenched players with the resources to cover the cost of compliance at the expense of smaller entrants. As the U.S. analysis states, implementing a risk-based framework such as the one in the EU AI Act may also hinder “investment in AI R&D and commercialization in the EU, limiting the competitiveness of European firms” in the future.
Impacted Sectors
Additional Information
© 2026 Akin Gump Strauss Hauer & Feld LLP. All rights reserved. Attorney advertising. This document is distributed for informational use only; it does not constitute legal advice and should not be used as such. Prior results do not guarantee a similar outcome. Akin is the practicing name of Akin Gump LLP, a New York limited liability partnership authorized and regulated by the Solicitors Regulation Authority under number 267321. A list of the partners is available for inspection at Eighth Floor, Ten Bishops Square, London E1 6EG. For more information about Akin Gump LLP, Akin Gump Strauss Hauer & Feld LLP and other associated entities under which the Akin Gump network operates worldwide, please see our Legal Notices page.