Europe Needs to Build Its Own AI Muscle, Says ECB's Lagarde

European Central Bank President Christine Lagarde called on Europe to become a producer of artificial intelligence technology, saying it's crucial for maintaining autonomy and achieving efficiency improvements that will sustain the region's standard of living.

Lagarde pointed out that European companies currently rely heavily on importing AI from abroad, particularly from the United States. This creates vulnerability if access is restricted, she warned, as 'a withdrawal of access, or a change in its terms, would then reach every sector at once.'

She emphasized the need for Europe to build more computing capacity and develop its own AI capabilities to avoid being reliant on others.

Lagarde stated that implementing AI quickly could increase productivity levels by up to 4% over a decade, which she called 'transformative' for public finances.