Europe Risks Dependence on AI Powerhouses, Warns ECB President

European Central Bank President Christine Lagarde has sounded the alarm on Europe's vulnerability to the US and China in artificial intelligence (AI) development. Speaking in Vienna, she emphasized that the continent must build autonomous digital capacities to meet its economic needs.

Lagarde highlighted a stark technological gap between Europe and major players like the US and China. Last year, the US developed 59 significant AI models, while China created 35. In contrast, France and the UK each developed only one model.

The European Central Bank president also pointed out that the region is heavily dependent on foreign computing infrastructure, with the US owning about 75% of the world's data centers. Europe accounts for just 5%. If left unchecked, this gap could widen further in the next decade.

Lagarde warned that Europe cannot afford to delay AI adoption while protecting personal data, as this would harm economic growth. However, rapid adoption without developing its own capacities could make the continent completely dependent on foreign companies and technologies.