Europe's tech economy serves as a cautionary tale of what happens when preemptive regulations take priority over nurturing domestic success stories. The EU's AI Act, which just passed, imposes sweeping restrictions and costly compliance mandates on AI applications, potentially banning innovative services.

The US should not enter the race to enact restrictive AI regulations, as it risks missing out on AI's positive impacts and driving innovators and jobs overseas. The US has an opportunity to lead in the$1.3 trillion generative AI market and boost global GDP by 14% by the end of the decade. The article further advises policymakers to shape AI regulations proactively, avoiding hasty imitation of the EU approach. Rather than worrying about being 'behind' in regulation, they should embrace the US regulatory environment's role in fostering world-leading tech services.

The US should establish its own innovation-friendly rules and responsibly nurture its AI lead.