It is in regards to the GDPR. If you're a European vendor and process PII, you must ensure some level of data protection. If you want to be on the safe side, you'll pick European providers instead of US hyperscalers (who have EU data centers, but are still US owned).
GDPR doesn't stop personal data being stored. It handles whom it can be shared with, when it has to be deleted, and only collect as much data as required. Also gives transparency to the users about their data use.
And if I were to give over personal information to an AI company, then absolutely I'll prefer a company who actually complies with GDPR.