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.

The definition of systemic risk in Article 3(65) of the EU AI Act presents challenges of interpretation due to potential ambiguities. This working paper analyses these ambiguities and how the GPAI Code of Practice attempts to categorise these risks through a taxonomy. A key concern is the potential for exploitation of these systemic risk definitions by GPAI model providers.