Build, don’t bind: Accel’s Sonali De Rycker on Europe’s AI crossroads

Summary

Sonali De Rycker, a general partner at Accel and one of Europe’s most influential venture capitalists, is bullish about the continent’s prospects in AI. But she’s wary of regulatory overreach that could hamstring its momentum. At a TechCrunch StrictlyVC evening earlier this week in London, De Rycker reflected on Europe’s place in the global AI race, balancing optimism with realism. “We have all the pieces,” she told those gathered for the event. “We have the entrepreneurs, we have the ambition, we have the schools, we have the capital, and we have the talent.” All that’s missing, she argued, is the ability to “unleash” that potential at scale. The obstacle? Europe’s complex regulatory landscape and, in part, its pioneering but controversial Artificial Intelligence Act. De Rycker acknowledged that regulations have a role to play, especially in high-risk sectors like healthcare and finance. Still, she said she worries that the AI Act’s broad reach and potentially stifling fines could deter innovation at the very moment European startups need space to iterate and grow. “There’s a real opportunity to make sure that we go fast and address what we’re capable of,” she said. “The issue is that we are also faced with headwinds on regulation.” The AI Act, which imposes stringent rules on applications deemed “high risk,” from credit scoring to medical imaging, has raised red flags among investors like De Rycker. While the goals of ethical AI and consumer protection are laudable, she fears the net may be cast too wide, potentially discouraging early-stage experimentation and entrepreneurship. That urgency is amplified by shifting geopolitics. With U.S. support for Europe’s defense and economic autonomy waning under the current Trump administration, De Rycker sees this moment as a decisive one for the EU. “Now that Europe is being left to fend [for itself] in multiple ways,” she said. “We need to be self-sufficient, we need to be sovereign.” That means unlocking Europe’s full ec...