Hello, and welcome to TechScape. I’m your host, Blake Montgomery, writing to you from an American grocery store, where I’m planning my Thanksgiving pies.

In tech, the European Union is deregulating artificial intelligence; the United States is going even further. The AI bubble has not popped, thanks to Nvidia’s astronomical quarterly earnings, but fears persist. And Meta has avoided a breakup for a similar reason as Google.

Regulation rollback

The hundreds of billions of dollars being spent on AI are overwhelming Europe’s commitment to digital privacy and stringent tech regulation. The EU’s AI Act and General Data Protection Regulation (GDPR) law are being delayed and weakened, respectively. Former Italian prime minister Mario Draghi had warned a year ago that Europe had fallen behind the US and China in innovation and was weak in the emerging technologies that would drive future growth, such as AI. Others, including the EU’s economy commissioner, agreed with him.

My colleague Jennifer Rankin reports on Brussels’s quest for growth:

The plans were part of the commission’s “digital omnibus”, which tries to streamline tech rules including GDPR, the AI Act, the ePrivacy directive and the Data Act.

If agreed, the changes to GDPR would make it easier for tech firms to use personal data to train AI models without asking for consent, and try to end “cookie banner fatigue” by reducing the number times internet users have to give their permission to being tracked on the internet.

The commission also confirmed the intention to delay the introduction of central parts of the AI Act, which came into force in August 2024 and does not yet fully apply to companies.

Read more: European Commission accused of ‘massive rollback’ of digital protections

Meanwhile, the US is taking things even further in its quest to maintain its lead in artificial intelligence, and is seeking to undo any constraints on the future growth of the AI industry. Members of Congress have included language in the yearly National Defense Authorization Act that would direct the federal government to block state-level AI regulation. AI is not heavily regulated in the US in comparison to Europe or China, but it may soon be even less so. The same measure within the NDAA may also bar the Chinese drone maker DJI, the biggest in the world, from launching new products in the US.

Donald Trump drafted an executive order to the same effect last week, and Republicans in Congress proposed a 10-year moratorium on state laws regulating AI earlier this year that failed in a spectacular 99-1 Senate vote. The additions to the act may face a similar avalanche of blowback. On Monday, more than 200 state-level representatives and senators published a letter opposing the measure (pdf).

Under the proposed regulation’s terms, the justice department would sue individual states that attempt to rein in AI, likely California and Colorado. Should the act pass, the US would go even further hands-off…


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Last Update: November 25, 2025