Europe Must Produce Its Own AI Tech Amid Growing Dependence on US

European Central Bank President Christine Lagarde emphasized the need for Europe to become a producer of artificial intelligence technology in order to maintain its autonomy and secure efficiency improvements. This is crucial for sustaining its standard of living, according to Lagarde.

Lagarde noted that European companies currently rely on importing AI technology from abroad, particularly from the United States. However, this creates vulnerability if access is restricted or terms are changed, which could threaten every sector. 'A withdrawal of access, or a change in its terms, would then reach every sector at once,' Lagarde said.

Lagarde stressed that building more European computing capacity is essential to mitigate this risk. If implemented quickly, AI could increase productivity levels by up to 4% over a decade, which would be transformative for public finances, she said.