Europe Must Build Own AI or Risk Losing Economic Freedom

Europe's economic future hangs in the balance as it struggles to catch up with the US and China in AI development. According to Christine Lagarde, president of the European Central Bank (ECB), Europe must invest in its own AI technology and build more datacentres to avoid being cut off by its rivals.

Lagarde warned that if Europe fails to develop its own AI models, it risks losing its economic freedom. 'Either it holds back on adopting, because it cannot protect its data, and forgoes the growth. Or it adopts AI quickly, becomes highly dependent, and risks losing the freedom to organise its economy according to its own values,' she said.

Currently, the US produces 59 notable AI models, while China has produced 35. In contrast, France and the UK have only produced one each. Furthermore, Europe's datacentre capacity is lagging behind, with just 5% of global capacity compared to the US' 75%. Lagarde urged Europe to build more computing capacity, warning that 'Europe already has too little datacentre capacity to meet its own demand, and on current trends, that gap is projected to grow more than sixfold within a decade.'

The ECB boss emphasized that the threat of being cut off from AI would have severe economic consequences. 'A withdrawal of access, or a change in its terms, would then reach every sector at once,' she said.