What AI companies are really worried about is a right of appeal from decisions made by a computer. The EU has that. "Individuals should not be subject to a decision that is based solely on automated processing (such as algorithms) and that is legally binding or which significantly affects them."[2] This moves the cost of LLM errors from the customer to the company offering the service.
[1] https://calmatters.org/economy/technology/2024/09/california...
[2] https://commission.europa.eu/law/law-topic/data-protection/r...