This talk of "peak market confidence" feels a bit too optimistic when we haven't seen the AI Act really tested yet.
A single failure mode, like a major data breach despite compliance, could quickly turn that "strategic asset" into a massive blast radius for investors.
Remember when those new smart homes were supposed to be so secure, and then one software snap let hackers in through the doorbell camera?
Compliance on paper doesn't always stop a real-world weakest link from appearing, and that's the risk institutional investors actually see.