Position Paper: If Innovation in AI Systematically Violates Fundamental Rights, Is It Innovation at All?

TL;DR

The paper argues that AI innovations which systematically violate fundamental rights cannot be considered true innovation. By analyzing historical precedents and invoking the Collingridge Dilemma, it contends that well-designed, adaptive regulation is an enabler of responsible AI rather than a constraint. The EU AI Act is presented as a concrete model featuring risk-based classification, regulatory sandboxes, SME support, FRIA, transparency, accountability, and AI literacy to operationalize responsible innovation. The authors claim these governance tools convert perceived regulatory burdens into competitive advantages, building legal certainty and consumer trust while aligning AI progress with democratic values. Ultimately, the paper maintains that regulation is essential to the sustainable, ethical advancement of AI, and that without respecting fundamental rights, AI cannot be considered genuine innovation.

Abstract

Artificial intelligence (AI) now permeates critical infrastructures and decision-making systems where failures produce social, economic, and democratic harm. This position paper challenges the entrenched belief that regulation and innovation are opposites. As evidenced by analogies from aviation, pharmaceuticals, and welfare systems and recent cases of synthetic misinformation, bias and unaccountable decision-making, the absence of well-designed regulation has already created immeasurable damage. Regulation, when thoughtful and adaptive, is not a brake on innovation -- it is its foundation. The present position paper examines the EU AI Act as a model of risk-based, responsibility-driven regulation that addresses the Collingridge Dilemma: acting early enough to prevent harm, yet flexibly enough to sustain innovation. Its adaptive mechanisms -- regulatory sandboxes, small and medium enterprises (SMEs) support, real-world testing, fundamental rights impact assessment (FRIA) -- demonstrate how regulation can accelerate responsibly, rather than delay, technological progress. The position paper summarises how governance tools transform perceived burdens into tangible advantages: legal certainty, consumer trust, and ethical competitiveness. Ultimately, the paper reframes progress: innovation and regulation advance together. By embedding transparency, impact assessments, accountability, and AI literacy into design and deployment, the EU framework defines what responsible innovation truly means -- technological ambition disciplined by democratic values and fundamental rights.