European Union AI regulation is both model and warning for U.S. lawmakers, experts say

“America’s AI innovators risk getting squeezed between the so-called Brussels Effect of overzealous European regulation and the so-called Sacramento Effect of excessive state and local mandates,” said Adam Thierer, a Senior Fellow at think tank R Street Institute, at the hearing.

The EU’s AI Act is comprehensive, and puts regulatory responsibility on developers of AI to mitigate risk of harm by the systems. It also requires developers to provide technical documentation and training summaries of its models for review by EU officials. The U.S. adopting similar policies would kick the country out of its first-place position in the Global AI race, Thierer testified.

The “Brussels Effect,” Thierer mentioned, is the idea that the EU’s regulations will influence the global market. But not much of the world has followed suit — so far Canada, Brazil and Peru are working on similar laws, but the UK and countries like Australia, New Zealand, Switzerland, Singapore, and Japan have taken a less restrictive approach.