Europe Must Not Miss Out on AI Revolution, Lagarde Warns
Christine Lagarde, President of the European Central Bank (ECB), warned that Europe cannot afford to fall behind in the AI revolution. According to her, the continent's growth pattern over recent decades is eroding due to globalization, cheap energy, and an international system based on rules.
Lagarde emphasized that Europe was largely sidelined in the first digital revolution, with economic benefits from information and communication technologies disproportionately captured by other countries. She cautioned against repeating this experience with AI, the second digital revolution.
The ECB head pointed out that Europe has significant assets, including a large network of trade agreements, benchmark industrial capacity, and a highly skilled workforce. However, she noted that turning internal resilience into long-term growth requires better leveraging the European single market's dimension.