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.
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The EU’s Strategic Dilemma
Balancing Rights, Innovations, and Competitiveness under the AI Act
Key Insights
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
Written by Chiara Dinarello
Edited by Hanna Zylowski
28 April 2026 · 19:23 CETUpdated 29 July 2026 · 15:47 CET
Cite this brief
Dinarello, C. (2026). The EU’s Strategic Dilemma. EPIS Insight · Artificial Intelligence & Cybersecurity.
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