And yet, the empirical results is that the US is now wealthier than the EU (at least, in totality).

And not to mention that such regulations (on AI) might not be adhered to by countries such as China, which would make it all but moot - except it causes harm to western companies looking to profit.

A cautious approach is valid only if you have unlimited budget and you are not in a natural darwinian selection process of elimination.