The AI Act in the EU aims to increase transparency in the data used for training AI models, potentially requiring providers to disclose detailed summaries of training content. However, there's a concern that revealing training data could jeopardize trade secrets, as the quality and scale of training data can significantly impact model performance. The Act also focuses on consumer rights regarding the use of AI by institutions like banks and insurers to ensure fair practices such as in credit approvals. While larger tech companies may afford compliance with the legislation, startups could face challenges due to resource constraints, hindering disruptive innovation in Europe. The compliance burden may disproportionately affect small startups, as larger companies are more likely to face prosecution for violations. This could lead to tech companies opting to release products in regions with less stringent regulations, potentially stalling technological advancements in Europe. The Act's enforcement and its impact on global competition, especially with countries like China, pose challenges in regulating AI effectively while preserving innovation.