Europe Risks Falling Behind in AI Revolution, Lagarde Warns
European Central Bank President Christine Lagarde has sounded the alarm that Europe cannot afford to fall behind in the artificial intelligence (AI) revolution. Speaking at the World Economic Forum's headquarters in Geneva, Lagarde emphasized the need for European firms to invest in AI technology to stay competitive globally.
Lagarde cited encouraging signs that European companies are starting to invest in AI, with survey data showing that those in the euro area plan to allocate around 9% of their total investment to AI this year. However, she warned that Europe must spend about $3 trillion through 2035 to reduce its reliance on foreign suppliers for critical technologies such as AI.
The warning comes as the global economy undergoes significant transformations due to the rapid advancement of AI. The European Central Bank's president is urging policymakers and businesses to take swift action to avoid being left behind in this technological shift.