EU rules could push youth toward submission to algorithms

The paper envisions Europe as a potential hub for youth-led entrepreneurship in the generative AI sector, provided that governments and businesses collaborate to reduce regulatory burdens and embrace flexible frameworks such as soft-law guidelines, technical standards, and best practices. These tools, Sacconi argues, can balance accountability with innovation while allowing for continuous institutional oversight.

Maurizio Sacconi, former Italian Minister of Labour and head of the Reinventing Work group at the Istituto Bruno Leoni, has warned that Europe’s heavy-handed approach to artificial intelligence regulation could hinder the creativity of young workers. His latest paper, “Creativity or Submission? Young Europeans Face Generative Artificial Intelligence in a Hyper-Regulated Market”, published in European View (2025), argues that the continent must rethink its regulatory framework if it wants to empower the next generation to innovate rather than conform to algorithmic guidance.

Sacconi’s analysis comes at a pivotal moment as generative AI reshapes economies and workforces worldwide. While acknowledging the risks posed by unchecked AI, he contends that Europe’s instinct to over-regulate may reduce critical thinking and innovation among young workers, precisely when adaptability and creativity are most needed.

How regulation shapes creativity and critical thinking

The paper examines the tension between innovation and regulation in the European Union. Sacconi points to the EU AI Act as an example of Europe’s predisposition to legislate before fully understanding emerging technologies. He warns that an overly rigid framework can inadvertently encourage workers to rely on AI systems to avoid liability, diminishing their capacity for independent judgment.

He contrasts Europe’s approach with the more flexible policies seen in the United States and China. The US has scaled back prescriptive rules to encourage innovation, while China’s state-driven entrepreneurial model fosters rapid technological development. Sacconi argues that Europe’s hyper-regulation risks sidelining it in the global AI race, making young workers more likely to defer to machines rather than lead with human ingenuity.

The paper cites research by Lee and colleagues (2025), which found that excessive dependence on generative AI for routine tasks can erode workers’ critical thinking skills. This effect, Sacconi notes, is particularly concerning for Europe’s younger workforce, who risk losing the very cognitive abilities that enable them to handle unexpected challenges.

Education, workplace engagement, and incentives for innovation

Sacconi underscores the importance of holistic education in preparing young Europeans for a dynamic AI-driven economy. Drawing on the educational philosophy of Johann Heinrich Pestalozzi, centered on “heart, mind, and hand”, he advocates for an approach that balances moral development, intellectual rigor, and practical skills. He argues that this blend of competencies can nurture critical thinking, resilience, and creative problem-solving, enabling young people to become active participants in innovation rather than passive users of technology.

The paper also highlights the need for early identification of individual talents and diversified learning pathways, including dual apprenticeship models inspired by the German system. Sacconi calls for reforms to reduce bureaucratic barriers to educational choice and competition among training institutions, ensuring that the most effective models thrive and reach students from all backgrounds.

In the workplace, Sacconi sees participatory models as essential. He encourages companies to align employees’ personal goals with corporate objectives by involving young workers in decision-making processes and adopting result-oriented management practices. This approach, he argues, strengthens workers’ sense of responsibility and motivation, fostering innovation.

Sacconi also stresses the role of fair remuneration and benefits in retaining young talent. He suggests moving beyond standardized national wage agreements toward more flexible arrangements that recognize individual contributions, skills, and responsibilities. In his view, younger workers value opportunities for career development, rotational assignments, and benefits that enhance well-being and financial security, which collectively help cultivate loyalty and creativity.

Rethinking Europe’s regulatory and business environment

Besides education and workplace reforms, Sacconi calls for a reassessment of Europe’s regulatory and fiscal environment. He argues that the continent’s strict rules, based on an unrealistic aspiration for zero risk, must give way to a more adaptable system that encourages entrepreneurship and innovation. This includes simplifying bureaucratic processes, fostering self-employment, and creating conditions that allow young entrepreneurs to recover quickly from failed ventures.

Sacconi also urges policymakers to ensure that Europe’s decarbonization targets remain realistic and technologically neutral so that innovation can flourish without undue constraints. He believes that overly rigid policies in this area can inadvertently stifle new ideas and hinder economic dynamism.

The paper envisions Europe as a potential hub for youth-led entrepreneurship in the generative AI sector, provided that governments and businesses collaborate to reduce regulatory burdens and embrace flexible frameworks such as soft-law guidelines, technical standards, and best practices. These tools, Sacconi argues, can balance accountability with innovation while allowing for continuous institutional oversight.