> but my guess for what will happen regardless is the EU outsources its tech innovation to some other place where they can still reap the rewards.
The AI laws don't work that way. Just like Google can't say: "We'll just put all of our servers in the US so we don't have to comply with the GDPR and start serving the EU market".
> Kinda like how they've imported energy from countries with lower environmental standards.
That doesn't happen. Importing energy from another country doesn't make any difference for a countries emission rights and second of all the energy grid of the EU is connected only in a very limited way to countries outside the EU (like Turkey).
The companies being in America and selling demanded services in the EU will force the laws into one configuration, whether through lobbying by customers or direct pressure from the U.S.
I’m not seeing, for example, any effort to comply with EU regulations among any of the smaller AI startups, most of whom have customers in the EU. (Which is rational. Once they get bigger they can weigh fines against exiting the market. And if it becomes widespread, it can escalate to a political priority for State.)
The AI laws don't work that way. Just like Google can't say: "We'll just put all of our servers in the US so we don't have to comply with the GDPR and start serving the EU market".
> Kinda like how they've imported energy from countries with lower environmental standards.
That doesn't happen. Importing energy from another country doesn't make any difference for a countries emission rights and second of all the energy grid of the EU is connected only in a very limited way to countries outside the EU (like Turkey).