This paper examines how regulations in artificial intelligence (AI) are created, with a primary focus on the European Union’s AI Act. Employing a comparative qualitative analysis grounded in social contract theory, historical institutionalism, and cultural theory, it explores how cultural, historical, and political contexts shape AI regulation. The EU AI Act is analyzed as a central case study to demonstrate how societal values and historical experiences influence regulatory approaches. To further contextualize these insights, China’s AI policy is used as a comparative example, highlighting how differing cultural and historical factors drive contrasting regulatory strategies. The paper makes two key contributions: it illustrates how AI regulation and progress in AI is shaped by cultural and historical factors, and explains why AI policies that align with a society’s values are more likely to succeed. By offering a clear understanding of the interplay between culture, regulation, and technological progress, the paper contributes to the ongoing discourse on creating effective AI policies to balance regulation and innovation.