A Strategic Move to Pressure Policymakers?
While legal compliance is undoubtedly a key factor, some experts believe that tech companies are leveraging the situation to apply pressure on EU regulators. Giorgos Verdi, Policy Fellow at the European Council on Foreign Relations, noted that withholding AI technology from Europe could be a calculated move. “It has long been the demand of these companies to either remove some of these obligations altogether or simplify them. And so this is a great tactic,” Verdi said.
By delaying launches in the EU, companies may be trying to influence the region’s regulatory framework, pushing for simplified or relaxed regulations that would make it easier to introduce cutting-edge technology. The recent decisions by Apple and Meta to opt-out of signing the EU’s AI Pact, a non-binding commitment to the EU AI Act, further signal resistance to Europe’s stringent regulatory approach.
What Is the Impact on European Consumers?
For European consumers, the immediate impact of these withheld AI products has been somewhat minimal. Many citizens, particularly those concerned about privacy, value the data protections that come with regulations like GDPR. However, the long-term effects could be more profound.
According to Verdi, the real challenge lies not just in innovation, but in ensuring that these new products can be smoothly integrated into European industries to boost competitiveness. “At the end of the day, competitiveness is not only about innovating new products but also being able to integrate these products so that they enhance the competitiveness and the productivity of European companies,” Verdi explained.
Some tech experts have warned that Europe’s stringent regulations could open the door for American and Chinese competitors to dominate the market. As European AI companies face increasing regulatory hurdles, they could fall behind global rivals that operate in less restrictive environments.
