Asian tech firms are navigating a complex landscape due to differing AI regulations in the US and EU. This regulatory divergence threatens to hinder their global competitiveness, creating a costly paradox.

Asian technology firms are facing a “costly paradox” as they try to navigate an increasingly uneven global AI rule book, with divergent compliance requirements in the European Union and the United States threatening to blunt their competitive edge. Analysts say the challenge is acute for Asian companies. While the EU has a single, comprehensive and legally binding artificial intelligence framework based on the landmark EU AI Act, US technology-related laws are decentralised at the state...