A leading expert has suggested that the potential bursting of the AI bubble could become a strategic advantage for the European Union in its growing geopolitical rivalry with the United States under a potential second Trump administration. The expert argues that while the U.S. has been driving rapid AI innovation and investment, the EU’s more cautious regulatory approach—exemplified by the AI Act—may position it to weather a market correction more effectively. As tensions rise between the EU and the U.S., particularly under the threat of renewed protectionist policies from Donald Trump, the EU’s regulatory framework could serve as a shield against the volatility of overhyped AI startups. With Trump previously criticizing the EU’s digital regulations as barriers to American tech dominance, companies like Spotify and Accenture have found themselves caught in the crossfire. Both have faced scrutiny over compliance with EU rules, including the Digital Markets Act and the AI Act, which impose strict requirements on data use, algorithmic transparency, and risk assessments. The expert notes that while the U.S. has seen a surge in AI funding and speculative investment, much of it is concentrated in a few high-profile startups and big tech firms. A sudden correction in the AI market—driven by overvaluation, technical stagnation, or regulatory pushback—could disproportionately impact American companies. In contrast, the EU’s focus on responsible innovation, ethical standards, and long-term sustainability may allow its tech sector to remain resilient. Moreover, the EU’s regulatory rigor could become a diplomatic tool. By positioning itself as a global leader in trustworthy AI, the bloc could attract international partners seeking alternatives to U.S.-centric tech ecosystems. This could strengthen the EU’s influence in shaping global AI norms, especially if the U.S. retreats into isolationist policies. The situation underscores a broader shift: regulation is no longer just a compliance burden but a potential competitive edge. As the AI landscape evolves, the EU’s measured pace may not be a weakness—it could be its secret weapon in a new era of transatlantic tech rivalry.