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The EU’s Strategic Dilemma

Balancing Rights, Innovations, and Competitiveness under the AI Act

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This article investigates whether the EU AI Act can balance fundamental rights protection with economic competitiveness. While the Act strengthens a value-based approach to AI governance, its broad regulatory framework combined with considerable exceptions risk undermining both effectiveness and innovation. Ultimately, without stronger industrial support, the Act may weaken the EU’s international stance rather than reinforce its global leadership

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Brussels has favoured a “rights-driven” model to AI governance, crowned by the adoption of the AI Act (2023), which prioritises risk mitigation and the safeguard of fundamental rights.

Chiara Dinarello Chiara Dinarello holds a Master’s degree with honours in European and International Studies. Her research focuses on security dynamics in the Middle East and the Mediterranean, with particular attention to Turkey and regional conflicts. She has gained experience in diplomatic and research settings, contributes to think tanks, and is currently expanding her expertise through an Executive Master in International Marketing, Events & Media.

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Dinarello, C. (2026). The EU’s Strategic Dilemma. EPIS Insight · Artificial Intelligence & Cybersecurity.
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