I'm sure that would work out fine. Just like the GDPR regulation made the web so much better & more private, and the promise of the AI act is boosting innovation in Europe...
The GDPR regulation is great and arguably does make the web more private and better. At the very least, it's better than having no regulations.
I've even been able to successfully use it to remove something private about me from the internet. I don't think I would have even gotten a response had there been no legal precedent.
You can always argue about how some regulations are badly implemented or incomplete but I believe it would be very misguided to believe that no regulations are instead the better alternative.
But behind the scenes companies did start to think about customer data gathering, retention and deletion in terms of maximal fine of 4% of turnover.