Europe’s challenges with artificial intelligence stem from deep regulatory, cultural, and historical differences compared with the United States. Europe produces plenty of AI talent, but many startups move to the U.S., drawn by greater access to capital, larger markets, and lighter regulation. The EU’s risk-averse approach is strongly shaped by 20th-century experiences with surveillance and abuses of privacy, and it prioritizes safety through strict rules such as the EU AI Act.
The United States, by contrast, emphasizes speed and innovation with less government oversight. Critics argue that EU regulation slows growth, while supporters say it builds trust and long-term resilience. At the same time, Europe is trying to catch up through major new investments.
