Euro Area Lags Behind US in AI Investment and Adoption

European Central Bank President Christine Lagarde has highlighted the growing importance of artificial intelligence (AI) in the euro area, but notes that the US continues to lead in digital spending and AI adoption. According to Lagarde, euro area companies plan to direct about 10% of their total investment to AI by 2026. In contrast, the US saw its digital investment grow twice as fast as the euro area over the past two years.

The gap is also evident in workplace adoption, with US workers spending two to three times more time using AI compared to those in the largest euro area economies. The US produced 59 notable AI models last year, while Europe's data-center shortfall is projected to expand from 3 gigawatts in 2025 to 20 gigawatts by 2036.

Lagarde emphasized the need for more domestic computing capacity and locally hosted AI models capable of handling most tasks. She also called for deeper capital markets that can support companies through years of losses, saying 'AI is that project.'