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The Paradoxes of the European Union’s AI Regulation

The European Union’s AI Act adopts a rights‑driven, human‑centric regulatory model, aiming to protect fundamental rights while curbing the power of large tech firms. Critics argue the EU has used regulation as a substitute for a coherent AI investment strategy, focusing on output controls instead of building capital, data, and talent ecosystems. The Act’s massive complexity, coupled with a pending Digital Omnibus amendment, threatens legal certainty and may stifle innovation. Ultimately, the EU faces a paradox: safeguarding values while risking its competitive position in the global AI race.