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<\/p>\nSonali De Rycker, a general partner at Accel and one of Europe\u2019s most influential venture capitalists, is bullish about the continent\u2019s prospects in AI. But she\u2019s wary of regulatory overreach that could hamstring its momentum.<\/p>\n
At a TechCrunch StrictlyVC evening earlier this week in London, De Rycker reflected on Europe\u2019s place in the global AI race, balancing optimism with realism. \u201cWe have all the pieces,\u201d she told those gathered for the event. \u201cWe have the entrepreneurs, we have the ambition, we have the schools, we have the capital, and we have the talent.\u201d All that\u2019s missing, she argued, is the ability to \u201cunleash\u201d that potential at scale.<\/p>\n
The obstacle? Europe\u2019s complex regulatory landscape and, in part, its pioneering but controversial Artificial Intelligence Act.<\/p>\n
De Rycker acknowledged that regulations have a role to play. Still, she said she worries that the AI Act\u2019s broad reach and potentially stifling fines could deter innovation at the very moment European startups need space to iterate and grow. While the goals of ethical AI and consumer protection are laudable, she fears the net may be cast too wide.<\/p>\n
\u201cThere\u2019s a real opportunity to make sure that we go fast and address what we\u2019re capable of,\u201d she said. \u201cThe issue is that we are also faced with headwinds on regulation.\u201d\u00a0<\/p>\n
That urgency is amplified by shifting geopolitics. With U.S. support for Europe\u2019s defense and economic autonomy waning under the current Trump administration, De Rycker sees this moment as a decisive one for the EU. \u201cNow that Europe is being left to fend [for itself] in multiple ways,\u201d she said, \u201cwe need to be self-sufficient, we need to be sovereign.\u201d<\/p>\n
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That means unlocking Europe\u2019s full potential. De Rycker points to efforts like the \u201c28th regime<\/a>,\u201d a framework aimed at creating a single set of rules for businesses across the EU, as crucial to creating a more unified, startup-friendly region. Currently, the mishmash of labor laws, licensing, and corporate structures across the countries creates friction and slows down progress.<\/p>\n \u201cIf we were truly one region, the power you could unleash would be incredible,\u201d she said. \u201cWe wouldn\u2019t be having these same conversations about Europe lagging in tech.\u201d<\/p>\n In De Rycker\u2019s view, Europe is catching up. Cities like Zurich, Munich, Paris, and London are starting to generate their own self-reinforcing ecosystems thanks to top-tier academic institutions and a growing base of experienced founders. Accel, for its part, has invested in over 70 cities across Europe and Israel, giving De Rycker a front-row seat to the continent\u2019s fragmented but flourishing tech landscape. <\/p>\n Still, on Tuesday night, she noted a stark contrast with the U.S. when it comes to adoption. \u201cWe see a lot more propensity for customers to experiment with AI in the U.S.,\u201d she said. Meanwhile, U.S investors are \u201cspending money on these kinds of speculative, early-stage companies. That flywheel keeps going.\u201d<\/p>\n
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