Christine Lagarde: A new age of capital: growth, sovereignty and AI

Christine Lagarde spoke of a new age of capital, growth, sovereignty and AI. She began with the Gründerzeit, a period similar to today where new technologies transformed the economy. However, the Gründerzeit ended in 1873 with a stock market crash. Today, European savers are financing AI, but most of the money is still going to the United States.

Europe needs to invest more in AI to benefit from its growth, as the technology is arriving at a time when productivity is declining. AI could boost productivity by up to 4% over a decade, which would be crucial for Europe's public finances. The gap in AI adoption between Europe and the United States is significant, with US digital investment growing twice as fast as in the euro area.