Europe Plans Major AI Deregulation Package for 2026 as Continent Falls Behind US and China
Summary
Europe prepares major AI deregulation package for 2026 to catch up with US and China dominance, as the continent struggles with low business adoption rates and hosts only a handful of AI models, while investor enthusiasm for AI technology may simultaneously peak and decline due to unmet promises and major model failures.
Key Points
- Europe significantly lags behind the United States and China in AI development, hosting only a handful of AI models and showing lower business adoption rates, which constrains productivity gains and widens the structural growth gap
- The European Commission may propose a major AI deregulation package in 2026 to boost competitiveness, potentially allowing companies to train models more easily and reduce dependence on US-made AI
- Investor enthusiasm for AI could fade in 2026 as the technology reaches peak inflated expectations, with investments failing to deliver on promises and major model errors prompting companies to rethink AI applications