It's usually the Americans who are freaking out over this, I assume based on their local experience. It’s the same thing about the unions or any other stuff that works completely differently in EU and USA. it cuts both ways, European understanding of the American healthcare system is also a caricature.
wrong analogies also help, like assuming that EU is like the American federal system or that the European law works like the American law.
In the specific case about artificial intelligence, EU is interested in regulating high risk systems, but the online conversation revolves around people freaking out that EU will ban their home grown language model.