The world's first comprehensive AI law has been in effect for 12 months. We analyze the impact on startups, big tech, and consumer protection.
What's Working
- Transparency requirements forcing AI companies to disclose training data sources
- Consumer protection has measurably improved — fewer dark patterns in AI products
- High-risk AI systems (hiring, credit scoring) now require human oversight by law
- Watermarking of AI-generated content is becoming standard across the EU
What's Failing
- EU AI startups report a 30% innovation slowdown vs US peers
- Compliance costs are crushing small AI companies (€100k+ per certification)
- Definitions of "high-risk" are vague — companies err on side of over-compliance
- Enforcement is wildly inconsistent across member states
The Verdict
The intent was right — protect citizens from AI harm. The execution has been heavy-handed enough to push talent and capital to the US and Asia. Expect amendments in 2027.
