The Brussels Effect 2.0: Why the EU AI Act Matters Far Beyond Europe

The EU AI Act is officially law, and its impact won’t be confined to European borders. If history is any guide, we’re watching the early stages of what some are calling “The Brussels Effect 2.0.” Just as GDPR reshaped global data privacy standards, the AI Act is poised to redefine how companies build, govern, and scale artificial intelligence.

But this isn’t just about compliance. It’s about strategy.

Companies that treat the AI Act as a bureaucratic nuisance will play catch-up. The smart ones—those that start aligning their models, governance, and transparency practices now—stand to gain a lasting edge. Why? Because EU standards have a way of becoming global defaults, whether or not your business is based in Brussels, Boston, or Bangalore.

In this piece, I unpack:

• What the AI Act actually requires (in plain language)
• How its phased rollout will affect global AI builders
• Why designing for regulation can become a competitive moat
• And how U.S. companies can lead by preparing, not reacting

📖 Read the full long-form essay here on Substack:
👉 https://open.substack.com/pub/axelnewe/p/the-brussels-effect-20-building-ai

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