Europe Must Develop Its Own AI to Protect Autonomy and Productivity

European Central Bank President Christine Lagarde has warned that Europe must develop its own artificial intelligence technology to safeguard its strategic autonomy and secure productivity gains. In a speech in Vienna, she noted that European companies rely heavily on AI developed overseas, particularly in the US, and that dependence could leave them vulnerable if access is restricted or terms changed.

Lagarde pointed out that AI will increasingly be used in various sectors, including border control, tax auditing, transportation, healthcare, and finance. She noted that a loss of access to AI technology could give external partners 'unprecedented leverage over Europe' in negotiations on issues like tariffs and digital taxes.

The ECB president emphasized the need for Europe to rapidly expand its domestic computing capacity and develop AI models capable of handling most tasks within European infrastructure. This would reduce the potential impact of any interruption in access to foreign AI services.