How do the AI Act and DSA collide in shaping Europe’s AI future? This paper uncovers hidden gaps in systemic risk oversight, exposing costly “over-assessment” that stifles innovation. By calling for smarter, simplified regulation, it argues for a path that safeguards rights without derailing AI progress in the EU. The analysis offers a blueprint for balancing accountability with competitiveness in the digital era.

With the majority of obligations for general-purpose AI (GPAI) models set to take effect on 2 August 2025 (AI Act, Chapter V, Art. 53), the European Commission has published the long-awaited GPAI Code of Practice on 10 July 2025. The document—developed by independent experts—serves as voluntary guidance to help GPAI providers prepare for compliance under the EU AI Act. It focuses on three key areas: Copyright, Transparency, and Safety & Security.

Exploring AI hallucinations through the lens of GDPR, this article focuses on the regulatory challenges, key DPA perspectives, and industry measures to balance innovation and data protection.