Europe Must Develop Its Own AI to Escape Foreign Leverage

European Central Bank president Christine Lagarde has sounded an alarm about Europe's vulnerability to foreign technology, specifically artificial intelligence (AI).

Lagarde emphasized that building sovereign AI capability is essential for safeguarding the continent's autonomy and capturing productivity surges to sustain its standard of living.

The current dependence on US-developed AI tools leaves European businesses exposed if access is rescinded or terms are rewritten, she warned. This leverage could be used in any negotiation, including those over tariffs or digital taxes, Lagarde added.

Lagarde noted that machine learning models will touch nearly every facet of daily public life and administration within a few years, from screening goods at borders to deciding which tax returns are audited.