EU takes a page from Ireland's AI playbook

The European Union (EU) aims to level the playing field in the artificial intelligence (AI) race by emulating Ireland, a pioneer in the technology despite facing local opposition. Ireland will host an international AI summit in Dublin to demonstrate its potential to contribute to the technological revolution. While the EU emphasizes the need for strong governance to curb AI risks, it also recognizes the importance of investing and leveraging AI's potential to stay competitive with the United States and China.

EU chief Ursula von der Leyen emphasized the urgency to remain in the race during a recent statement.

AI is making waves in the EU, with 20% of companies employing it, rising to 55% for larger businesses, according to EU data. However, most companies currently utilize AI for simple tasks. Europe possesses only 5% of the world's data-center capacity, trailing behind the United States (75%) and China (15%), according to Andrea Renda, director of research at CEPS think tank.

To bolster its capacity, the EU is investing billions in AI-focused facilities equipped with advanced processors and energy-efficient data centers for companies and research labs.

Despite its progress, the EU acknowledges that merely increasing data-center capacity may not suffice. Renda emphasized the necessity for political leadership to identify and address the challenges and opportunities in this transformative process. While the EU is actively mobilizing funds and appointing a Siemens executive to encourage manufacturers to adopt AI under a strategy called "Apply AI," Renda contends that the strategy lacks dedicated budgetary support.

Without bold interventions, she warns, Europe risks falling further behind its rivals. Ireland, already a favored location for US tech giants due to its tax policies and advantageous location, seeks to bolster momentum in Europe.

Prime Minister Micheal Martin is expected to promote Ireland's role as a hub for AI development during the summit. However, Ireland also presents some of the downsides of Europe's AI push, with heavy reliance on US giants conflicting with EU sovereignty efforts. Moreover, the rapid expansion of data centers is straining Irish infrastructure, particularly its power grid, leading to local opposition.

Data centers accounted for 23% of the country's electricity consumption in 2022, equivalent to all Irish households combined, as reported by the Central Statistics Office. Researcher Patrick Bresnihan noted that data centers only employed 3,300 people in total, raising concerns about the human impact of AI technology in Ireland.

Some advocates even propose a moratorium on data center development to allow policymakers time to devise a more progressive green industrial strategy.