Europe at Risk of Being Cut Off From AI Technologies, Warns ECB President

European Central Bank (ECB) President Christine Lagarde has warned that Europe faces an unprecedented risk of being cut off from artificial intelligence technologies. She emphasized the need for Europe to become a producer of AI technologies, partly to preserve its autonomy and achieve productivity gains.

Lagarde pointed out that European companies are investing in AI but mostly importing these technologies from abroad, particularly from the United States. This makes them vulnerable if access is cut off and puts every sector of the economy at risk.

She noted that within a few years, AI will be inspecting goods at borders, determining which tax returns are subject to audit, managing train traffic, monitoring patients in hospitals, and processing bank payments. Losing access or changing terms would immediately affect all sectors, Lagarde said.

The way out of this situation lies in building up Europe's own computing capacity, she stated. Lagarde also stressed that AI could increase productivity by 4% over a decade, which would have a transformative effect on public finances.