Don't be a spectator: Europe embraces AI to make up for loss of economic power

European Commission President Ursula von der Leyen has called on Europe's businesses to rapidly advance artificial intelligence (AI) to counterbalance the continent's dwindling economic influence. French Foreign Minister Jean-Noel Barrot warned that Europe risks being portrayed as a passive observer of AI development, losing highly skilled workers to other nations and incurring significant expenses for imported US or Chinese AI technology.

Ms von der Leyen emphasized that AI is a crucial challenge for Europe, alongside competitiveness, high taxation, and the fragmentation of the European market. "AI is an economic and technological battle, and it is one of the most powerful productivity levers that we have," she stated.

Barrot argued that reversing Europe's AI lag could potentially grant the EU dominance in other areas. The European Union has launched a €10 billion public funding initiative to construct up to seven AI factories, aiming to lessen its reliance on the US. Currently, around 70-80% of Europeans utilize American AI models, with the top five US AI companies—Amazon, Microsoft, Google, Meta, and Oracle—planned to invest $450 billion in AI this year.

Barrot reassured that Europe trailing behind in the AI race is reversible and highlighted the establishment of a unified market for data as an ongoing endeavor.

However, disparities between European and US markets persist, such as differing regulations across the 27 EU countries, hindering businesses from swiftly expanding in Europe. The European Commission proposed measures to integrate and oversee European markets, potentially unlocking €470 billion in additional investments. Von der Leyen noted that these issues have been recognized for years but urged European leaders to act promptly. Industry experts echoed this sentiment, calling for decisive action from policymakers.