As Europe rolls out the AI Act, aiming for trust and transparency, industry leaders like SAP's CEO warn that excessive regulation could hinder competitiveness against the U.S. and China. The act's risk-based approach and extraterritorial scope pose challenges, particularly for startups, while Europe's strengths in AI talent and technology offer a competitive edge. SAP's shift to cloud computing and focus on AI exemplify how companies can navigate regulatory landscapes and drive innovation in a rapidly evolving market.