“Virkkunen insisted the deregulatory push [on AI] was driven by the EU’s own ambition to enhance its competitiveness, and not “dependent on the US”.

“We are very committed to cut bureaucracy and red tape,” she said.” https://on.ft.com/42TVbPM

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They're happy to cut back AI red tape because AI can be used as a tool to inflict harsh governance on a population.