It's likely to lead to the quasi-ban of LLMs sooner rather than later in the EU. This is going to be an enormous challenge to the EUs tech industry if UK and US firms can use LLMs but EU companies can't.
While I lean remain; some people seem to have serious blind spots that a _lot_ of EU legislation is poorly thought out and given the slow pace of change extremely hard to revoke once it is in force (cf the ridiculous cookie banners; which were implemented in law in 2002 and _still_ haven't been changed, despite 10+ years of efforts to do so in the EU institutions). It's going to be even worse with the EU Digital Services Act, where being in compliance with GDPR and the DSA is a lawyers dream, as from what I understand it directly contradicts each other.