EU regulation on AI blocks innovation within bloc— Miguel De Bruycker
Following last year’s introduction of mandatory rules for general-purpose AI, European governments faced domestic criticism over high compliance costs, which many feared would stifle investment and innovation. US authorities and major technology firms further condemned the rules, calling them protectionist measures aimed at disadvantaging American companies.
“We’ve lost the whole cloud. We have lost the internet, let’s be honest,” De Bruycker said. “If I want my information 100% in the EU, keep on dreaming. You’re setting an objective that is not realistic.” He explained that American companies control most digital infrastructure and critical online services, making it impossible to fully localize data storage in Europe.
De Bruycker emphasized that cyberspace is largely commercial and privately owned, meaning EU cybersecurity relies heavily on cooperation from US firms. The EU’s AI Act, which came into effect on August 2, 2025, imposes strict transparency, documentation, and copyright obligations on developers deploying AI systems in the bloc, with tougher rules for models deemed to pose systemic risks. Oversight of these rules falls under the EU AI Office.
Brussels softened its approach late last year by launching the Digital Simplification Package, aimed at reducing regulatory burdens on European startups, including companies like France’s Mistral AI and Germany’s Aleph Alpha. The package extends compliance deadlines and provides technical assistance through the Apply AI Alliance.
De Bruycker suggested that the EU should focus on developing its own digital infrastructure rather than trying to counter US “hyperscalers.” Drawing a parallel with the creation of Airbus, he called for a coordinated, state-backed effort to build European cloud computing and digital identity capabilities. “Instead of putting that focus on how can we stop the US ‘hyperscalers’, maybe we put our energy in… building up something by ourselves,” he said.
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