POLICY BRIEF – No. 20/2024 - Empires of Exceptionalism: - Lessons from the EU AI Act and Attempts

catch up with rivals like the US and China: The EU lacks an enforceable constitution, •Also, lawmakers must weigh the cost of and the Act prohibits its governments to failed regulation against the risks of non- impose social scoring and discriminatory regulation. [...] The former is sounding the alarm on how the federal government is falling behind technology and Europe, whereas the latter sees AI regulationasafreezeoninnovation.3However,SB1047hasalsofacedstrongoppositionfrom top Democrats and the private sector outside of Silicon Valley –4 like a Shibuya crossing of multiplefaultlines. [...] Second, SB 1047 drew its inspiration from the EU AI Act but failed to recognize that the risks facing the EU are 19 S ection 22602f on the SB 1047. [...] A Real Political Impetus for Legislation So, to paraphrase, Europe is not a stranger to “regulate fast and break things.” The EU policy objective and intention to halt the platform economy to help its retail, telecom, and media industries catch up is a well-discussed and rehearsed topic. [...] Here is where the EU AI Act significantly diverges from the risk-based approach: Rather than case-by-case decisions that are subject to proportionality and cost-benefit analysis to avoid overregulation, the EU AI Actdesignatesentiresectorsanduse-casesashigh-riskbydefaultevenifitdoesnotpresent substantialharm.