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
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