Philip R. Lane: AI adoption in Europe

My objective today is to outline how artificial intelligence (AI) is transforming the European Union economy. While the creation of cutting-edge AI models predominantly occurs in the United States and China, the implementation of AI will be a crucial factor in driving European productivity growth in the years ahead. Moreover, expenditures on AI adoption are currently serving as a substantial stimulus to the euro area economy.

European businesses are integral components of the global AI supply chain, and European investors are contributing to the financing of worldwide AI infrastructure through equity, debt markets, and the banking sector. I will further elucidate the primary trends observed in the data, with a particular emphasis on the insights provided by the surveys conducted by the European Central Bank (ECB) regarding the AI adoption process and its implications for the financial system.