Europe cannot be AI sovereign without control of its own intelligence

As AI becomes increasingly integrated into European businesses, the continent faces a pressing challenge: ensuring it maintains control over its own intelligence. Much of the advanced AI technology Europe relies on is produced in the United States and China, giving these nations significant influence over the technology crucial to the global economy. This geopolitical divide over AI is becoming more pronounced as each country develops competing AI ecosystems, with their rivalry tied to broader geopolitical interests.

Recent reports suggest the United States may soon compel countries to choose between US and China-led AI systems, while China has called for nations to respect their "digital sovereignty." This development poses a significant risk to Europe, which could become dependent on whichever superpower controls the intelligence it relies upon.

The European Commission has launched a call for up to seven AI Gigafactories, backed by up to €10 billion in EU and national funding, with the aim of unlocking at least €20 billion in private investment. However, achieving AI sovereignty is not merely about having the technology; it also involves controlling the knowledge businesses generate through AI.

When employees use AI, they inadvertently create valuable data about how their work gets done. Companies that possess this knowledge can leverage it to advance their AI capabilities, but there is a risk they may hand this information over to their vendors. This creates a situation where businesses could end up "renting back" their own know-how, potentially leading to the export of value from Europe.

While switching models or suppliers might be possible, disconnecting from a system that has learned a business's processes and organizational knowledge is far more challenging.

For startups and scale-ups, this is particularly crucial. Their competitive advantage often lies in their specialized knowledge and unique approach to their work. If this knowledge becomes trapped within an external platform, they risk sacrificing a significant portion of their value. European businesses, therefore, must focus on building on top of existing models and creating systems tailored to their specific needs.

This applied layer, where AI is integrated into a company's systems and put to work, offers Europe an opportunity to establish intellectual property and competitive advantage, even if the technology is developed elsewhere.

Additionally, Europe can focus on building the infrastructure that enables businesses to utilize different AI models without the need to rebuild their systems whenever the market changes. This flexibility can help minimize vendor dependency and maintain greater control over AI usage. By concentrating on the applied layer, Europe can position itself as a leader in creating safe, accountable, and useful AI, rather than merely competing for the largest models.

Europe possesses a robust industrial base, extensive sector-specific expertise, and businesses with deep understanding of their own processes. By applying its talent and industry experience to the applied layer of AI, Europe can become a genuine player in the AI race, rather than a distant third participant. The focus should be on deploying AI in a manner that is beneficial for businesses worldwide, rather than being a passive observer in the competition for advanced AI models.

In essence, Europe's decisive opportunity lies in building a sovereign applied AI layer that is safe, sovereign, and equitable by design, ultimately benefiting businesses across the globe.