Geopolitics & Regulation
AI Regulation and Investment
How government policy shapes where and how fast AI develops
What it is
AI regulation varies dramatically by jurisdiction. The EU AI Act (2024) establishes risk-based regulation, with the highest requirements for "high-risk" systems in domains like healthcare and law enforcement. The US has taken a lighter-touch approach, relying primarily on voluntary commitments and executive orders.
The regulatory environment creates incentives and disincentives: heavy regulation can slow domestic development and push AI companies to less-regulated jurisdictions. The US-China race dynamic creates political pressure against regulation that might handicap US companies.