In this episode, Andreas Munk Holm is joined by Eoghan O’Neill, Senior Policy Officer at the European Commission’s AI Office, to break down the EU AI Act, Europe’s strategy to lead the global AI wave with trust, safety, and world-class infrastructure.
They dive into why the EU’s approach to AI is not just regulatory red tape but a proactive framework to ensure innovation and adoption flourish across sectors—from startups to supercomputers. Eoghan unpacks how startups can navigate the Act, why Europe’s regulatory clarity is an advantage, and how investors should be thinking about this new paradigm.
Here’s what’s covered:
02:41 Eoghan’s Unorthodox Journey: From Gravy Systems to AI Policy
04:32 The Mission & Structure of the AI Office
05:52 Understanding the AI Act: A Product Safety Framework
09:40 How the AI Act Was Created: An Open, 1,000+ Stakeholder Process
17:42 What Counts as High-Risk AI (And What Doesn’t)
21:23 Learning from GDPR & Ensuring Innovation Isn’t Crushed
26:10 Transparency, Trust & The Limits of Regulation
30:15 What VCs Need to Know: Obligations, Timelines & Opportunities
34:42 Europe's Global AI Position: Infra, Engineers, Strategy
43:33 Global Dynamics: Commoditization, Gulf States & the Future of AGI
48:46 What’s Coming: Apply AI Strategy in September
📺 Watch the episode here or stream it on Spotify or Apple Podcasts—now with chapters for easy navigation 🎧
✍️ Show Notes
The AI Act: Europe’s Bold Bet on Safety, Trust & Adoption
Far from stifling innovation, the EU AI Act aims to unlock it by offering clarity and trust in AI systems. Think: escalators, aviation, medical devices—AI is joining the club of tech governed by mature, proven product safety regulation.
Who’s Regulated, and When?
There are two main “populations” the Act applies to:
Generative AI model providers (e.g., OpenAI, Mistral) — compliance begins August 2025
AI systems builders (i.e., most startups using AI) — must understand risk tiers (prohibited, high-risk, low-risk) and align accordingly
A public consultation and clear guidelines are underway to make this easy to navigate, with final guidance expected February 2026.
Defusing Regulatory Capture
The Commission isn’t dictating rules from an ivory tower. With 1,000+ stakeholders involved—ranging from Anthropic and OpenAI to NGOs and SMEs—the Code of Practice is being shaped by the ecosystem. It’s chaired by figures like Yoshua Bengio, with a clear focus on avoiding big tech dominance.
Transparency Is the New Trust Layer
Just like a box of cornflakes, AI systems in Europe will soon come with ingredients and “nutritional” labeling. This transparency layer can drive market adoption and serve as a moat for startups operating in regulated markets.
For VCs: Europe’s a Market Maker, Not a Market Killer
The AI Act creates a common framework across 27 countries
Most startups fall outside high-risk, facing minimal obligations
It creates opportunities in verticals like healthcare, law, and education
Legal clarity helps de-risk investment
Europe’s Strategic Advantage: Infra + Talent + Policy
AI Engineers: 30% more per capita than the US, 3x China
Supercomputers: 15 of the global top 50 are in the EU
Funding: €20B AI Gigafactories + €1B+ AI Factories investments
Free compute for approved startups launching H2 2025
Apply AI Strategy: Removing Friction to Scale AI in Verticals
Launching in September 2025, this will outline how to scale AI across verticals—based on real-world use cases and policy actions to overcome blockers like data access, compliance bottlenecks, and institutional inertia.
Why VCs Must Engage Now
Too many are passive or misinformed—often echoing US narratives that misunderstand the role and scope of EU regulations. The Commission wants to hear from the venture ecosystem. Think of it as a two-way street.
EU AI Deep Dive
The EU is laying serious groundwork to own the AI era—not just in legislation, but also infrastructure, strategy, and adoption. Here’s why we think Europe’s positioning is underappreciated:
Legal Clarity: 1 regulation, 27 markets
Infra Access: Public compute resources, free for startups
Talent Base: AI engineers and researchers distributed across leading institutions
Strategic Foresight: Balancing innovation and safety from Day 1
Open questions remain on defensibility, global regulatory convergence, and how fast agentic AI will scale—but the foundations are being laid now.
Connect with Europe’s leading LPs, Family Offices & Fund of Funds this September at Château de Beloeil.
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