US vs EU AI Policy: Why the Brussels Effect Is Losing Its Grip

Conversely, the United States has prioritized flexibility and innovation, focusing on voluntary commitments from major industry players rather than immediate, broad-reaching legislation. While the Biden administration has issued executive orders aimed at establishing safety standards and security guidelines, the U.S. strategy remains largely decentralized. Policymakers in Washington are wary of stifling domestic technological dominance, favoring a sectoral approach that emphasizes competitive advantage and national security over the broad, preemptive restrictions favored by European regulators.

This dichotomy has created a complex environment for global tech firms. As companies navigate the stringent compliance requirements of the EU’s AI Act alongside the more permissive, market-driven climate in the U.S., the traditional dominance of the Brussels Effect is being tested. Whether the EU’s regulatory framework will force global harmonization or if the U.S. preference for industry-led governance will carve out a new path remains the central question for international technology policy.