AI governance in a competitive world: Balancing innovation, regulation and ethics

The EU AI Act with its pioneering risk-based approach, sets a precedent for regulating AI by categorising applications based on their potential risks to individuals and society. By establishing clear guidelines for high-risk AI systems whilst imposing outright bans on some risks like social scoring, the Act seeks to balance ethics with AI development. However, stringent regulations risk presents some trade-offs, like having high compliance burdens for SMEs and startups, which can stifle innovation, pushing talent and investment to more business-friendly AI regions, and limiting Europe’s AI leadership.

1. Navigating the EU AI Act: How can regulators ensure the EU remains an AI leader while implementing risk-tiered regulations that prevent harm without stifling technological progress?
2. Competitiveness vs Overregulation: With global AI competition intensifying, what policy strategies can ensure that AI startups and enterprises thrive without unnecessary compliance burdens?
3. Ethical AI as a competitive advantage: Can responsible AI practices become a strategic differentiator for European companies, positioning them as global leaders in trustworthy, human-centric AI deployment?