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The AI race, Europe’s trusted power and how to map global risks
US–China rivalry, Europe’s regulatory edge, and practical steps for leaders
It’s been a while since we launched Above Trends, Beyond Insights. What started as an experiment in rethinking our editorial voice has now become a steady practice: every issue, we scan the signals that matter and translate them into business insight. Our commitment remains the same (less noise, more signal), with an even stronger focus on what executives need to navigate uncertainty: timely context, curated trends, and practical guidance.
The AI race goes diplomatic
At the Axios AI+ DC Summit on September 18, 2025, the rivalry between the United States and China over artificial intelligence took center stage. Beyond the competition over frontier models and chip supremacy, both government officials and tech leaders emphasized the urgent need for regulation and safety guardrails, alongside worries about job displacement across sectors. Key voices included Anthropic CEO Dario Amodei warning about China catching up, and White House AI adviser Sriram Krishnan framing the competition as a “business strategy.”
This framing of AI as a strategic asset is echoed in multiple outlets: for example, Axios’ follow-up article “How the White House defines the AI race with China” underlines that the US vision spans chips, models, and global adoption.
For companies, the implications are sharp: innovation strategy, regulatory foresight, international supply chains and partnerships must all be reassessed under the lens of geopolitical risk. European firms in particular face the dual task of aligning with global safety expectations while preserving agility and competitiveness.
TREND TRACKER
Europe’s trusted power strategy
While the United States and China battle for dominance, Europe is trying to turn regulation into a differentiator. Analysts suggest that the EU aims to become the world’s “trusted power” in artificial intelligence: not the fastest innovator, but the authority that sets standards others follow.
With the AI Act now moving into its implementation phase, Brussels is reinforcing its role as a regulator of frontier systems, focusing on human rights, safety and market fairness. This positioning could attract global companies seeking predictable, ethical frameworks and reputational credibility.
Yet the approach carries costs: slower time-to-market, higher compliance expenses and the risk of losing ground in raw technological capability. For business leaders, the question is whether the long-term brand value of “trusted AI” outweighs the short-term drag of regulatory adaptation.
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Mapping global AI regulatory risks
As AI governance frameworks multiply, multinational companies face a patchwork of requirements. Leaders need structured tools to anticipate risks before they materialize. Three practical steps can help build a global risk map:
Track regulatory layers: distinguish between international soft-law (e.g. UN resolutions), regional frameworks (EU AI Act), and national or state-level rules.
Prioritize exposure: identify which markets are most critical to your revenue and where compliance failures would carry the highest penalties or reputational damage.
Align governance internally: establish a cross-functional team—legal, compliance, data science, public affairs—that maintains a single enterprise-wide dashboard of AI-related obligations and risk scenarios.
By treating regulation as a dynamic portfolio of risks rather than as isolated obligations, companies can anticipate divergence, reduce surprises and transform compliance into a competitive advantage.
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