The EU only recently put AI at the top of its political agenda. However, data flows that are essential for the development of AI will need to fulfill European legal requirements. This chapter assesses whether the European legal framework on data protection may have an impact on the development of AI-based technologies. Given the size of the single market, European legal regulation of data flows inevitably produces legal effects outside the European territory. Those limitations may be challenged internationally as they constitute obstacles to trade for foreign companies and EU partners. The EU position tries not to be perceived as protectionist and promotes free flows of data that are essential for digital companies, in particular those developing the AI industry. This European way of dealing with digital trade and data flows in trade agreements is not shared by its trade partners. The contrast between the content of EU trade agreements and proposals and the last US free trade agreement illustrates how a possible transatlantic conciliation seems presently hard to attain. More broadly, fragmentation and new forms of sovereigntisms should continue to characterize the international free movement of data regime and impact future AI development.