The anti-innovation and anti-democratic EU’s AI Act, designed to regulate so-called “risky” AI applications but effectively ensuring European citizens remain technologically stagnant, has drawn heavy criticism from tech giants like Meta and Google, who argue it suffocates innovation and blocks Europe’s potential.

While the U.S. and China thrive under environments where innovation can “move fast and break things,” Europe remains shackled by restrictive frameworks, driving its brightest innovators and startups to countries that nurture creativity and risk-taking.

With only thirteen percent of European businesses adopting AI, critics warn that without a radical mindset shift, Europe will remain stuck in its primitive status—watching from the sidelines as the U.S. and China dominate the future of technology, and the massive wealth and power that comes with it.

Questions remain as to whether the EU can truly abandon its long-standing culture of heavy-handed regulation and bureaucratic oversight, which many argue stifles the very innovation it now seeks to foster.

European Commission President Ursula von der Leyen, who began her second term in December, has championed AI as a critical tool to rejuvenate Europe’s stagnant economy.

She has shifted the EU’s AI messaging away from regulatory caution to a pro-business narrative.

Her administration’s stance will be on full display at the AI Action Summit in France on February 10 and 11, where officials are expected to tout Europe as an attractive destination for AI development.

However, critics suggest that the EU’s deep-rooted regulatory mindset could still be its greatest obstacle.

The U.S. has taken the lead in the AI race by fostering an environment of minimal regulations and heavy investments, with major players like OpenAI, Google, and Nvidia driving breakthroughs.

China, too, is surging ahead with its AI models like DeepSeek.

Meanwhile, the EU’s approach has been centered on the AI Act, a regulatory framework designed to limit potentially risky AI applications.

While the EU claims this regulation provides 'legal certainty,' tech industry leaders argue that it is more of a barrier than a benefit.

Henna Virkkunen, the EU’s new tech chief, has been tasked with reshaping Europe’s AI strategy.

Since assuming her role two months ago, she has announced a one-point-five billion euro investment in AI-optimized supercomputers, half of which will be funded by the EU. These supercomputers aim to help European startups develop AI models that can compete with American giants like OpenAI’s GPT and Google’s Gemini.

Yet, many wonder whether funding alone can offset the regulatory bottlenecks ingrained in Europe’s system.

Virkkunen has acknowledged Europe’s lag in AI adoption.

Only thirteen percent of European businesses have integrated AI into their operations, a stark contrast to the rapid deployment seen in the U.S. At the World Economic Forum in January, she stressed that action is necessary to close the gap, but her optimism was met with skepticism by those who see regulation as the core problem.

Major tech companies have voiced their frustrations.

Meta’s chief lobbyist Joel Kaplan warned that Europe risks missing out on AI-driven growth due to its regulatory burdens.

Google’s Kent Walker echoed this sentiment, describing the EU’s voluntary guidelines for advanced AI models as a 'step in the wrong direction.'

German lawmaker Axel Voss, who is deeply involved in shaping the EU’s AI liability rules, has been blunt in his assessment.

'What we are spending right now is totally insufficient,' he said, referencing the U.S. plan to invest five hundred billion dollars in AI. Voss also criticized the EU’s tendency to prioritize risk mitigation over opportunity.

'It would have been better to approach this from the perspective of what we want to achieve with AI, rather than focusing on what we fear,' he remarked.

Despite these warnings, some EU officials remain dismissive of the criticism.

Marietje Schaake, a former European lawmaker involved in drafting voluntary AI rules, characterized tech companies’ complaints as attempts to avoid regulation.

However, critics argue that this attitude reflects the very mindset holding Europe back—a refusal to acknowledge that innovation requires flexibility, risk-taking, and a tolerance for failure.

The EU’s culture of micromanagement and bureaucratic control over businesses and citizens has long been a defining feature of its governance.

While officials like Virkkunen and von der Leyen insist that the bloc can change course, many observers are skeptical.

They point to the slow pace of change and the persistent focus on creating frameworks, guidelines, and oversight mechanisms as evidence that the EU may struggle to embrace the open, fast-moving nature of technological innovation.

The upcoming AI Action Summit will test whether the EU can truly shift from a regulatory-first mindset to one that prioritizes investment, creativity, and freedom.

Without this shift, Europe remain at its primitive status, with all the innovators and smart people running away to countries that do not limit their creativity and innovative way of thinking - left behind in the AI race, watching from the sidelines as the U.S. and China dominate the future of technology.