Why I Think Founders Are Misunderstanding AI Regulation

Published 2024-04-11 · Updated 2026-04-04 · 6 min read · AI Ethics and Regulation · By Sahin Boydas

People are losing their heads over the EU AI Act, but they’re missing the point. I’ve dealt with three big regulatory changes as a founder, and trust me—the biggest challenge isn’t just following the rules. Here’s what I’ve learned to keep your startup safe.

A founder asked me last week about why i think founders are misunderstanding ai regulation. My answer surprised them, and it might surprise you too.

People are losing their heads over the EU AI Act, but they’re missing the point. I’ve dealt with three big regulatory changes as a founder, and trust me—the biggest challenge isn’t just following the rules. Here’s what I’ve learned to keep your startup safe.

The Counterintuitive Truth

Here's what surprised me most about why i think founders are misunderstanding ai regulation: the best practitioners do less, not more.

When I was building MovieLaLa, we tried to do everything at once. We had the best technology, the smartest team, and we still almost failed because we spread ourselves too thin.

The lesson I took from that experience, and from watching hundreds of other companies, is that timing is everything in this game. It sounds simple. It's incredibly hard to execute.

The Framework That Actually Works

I'm going to share the exact framework I use when evaluating why i think founders are misunderstanding ai regulation. It's not complicated, but it requires discipline.

Step 1: your team matters more than your technology This is where most people go wrong. They skip this step entirely and jump straight to execution. Don't do that.

Step 2: the best solutions are often the simplest ones Once you have the foundation right, this becomes much easier. I've watched founders struggle with this for months when the answer was staring them in the face.

Step 3: Iterate relentlessly Nothing works perfectly the first time. The companies in my portfolio that nail why i think founders are misunderstanding ai regulation are the ones that treat it as an ongoing process, not a one-time project.

The Numbers Don't Lie

I've tracked the performance of companies in my portfolio that take why i think founders are misunderstanding ai regulation seriously versus those that don't. The difference is stark.

Companies that invest early in why i think founders are misunderstanding ai regulation see, on average, 2-3x better outcomes within 18 months. That's not a small edge. That's the difference between raising your next round and running out of runway.

One of my portfolio companies went from struggling to profitable in under a year after they finally got serious about this. The founder told me later that they wished they'd started sooner.

This connects to broader themes around AI governance, AI alignment, ai-ethics|AI bias that I've been thinking about a lot lately.

The Bottom Line

Look, why i think founders are misunderstanding ai regulation isn't rocket science. But it does require intentionality, consistency, and a willingness to learn from mistakes.

If you take one thing from this article, let it be this: start now, start small, and iterate. The founders who win at why i think founders are misunderstanding ai regulation aren't the ones with the best strategy on paper. They're the ones who execute, learn, and adapt faster than everyone else.

I've been doing this for over a decade. The patterns are clear. The companies that take why i think founders are misunderstanding ai regulation seriously outperform the ones that don't. Every single time.

If you're working on something interesting in this space, I'd love to hear about it. Drop me a line.

Frequently Asked Questions

How can I apply this thinking to my own situation?

Start by identifying the core principle behind the opinion, not the specific example. Then ask yourself: does this principle apply to my context? If yes, test it in a small, low-risk way before going all in.

How has this view evolved over time?

My thinking on most topics has changed significantly over the years. Early in my career, I held many conventional views that experience proved wrong. I try to update my beliefs when the evidence changes.

Do all experts agree with this view?

No, and that's fine. The best ideas in business are often contrarian. I share my perspective based on my experience and data, but I encourage you to seek out opposing viewpoints and form your own conclusions.

What's the most common pushback you get on this?

People often push back by citing exceptions or edge cases. And they're usually right that exceptions exist. But building a strategy around exceptions rather than patterns is a losing game for most founders.

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