Europe Warned of Economic Threat from Potential AI Access Cutoffs

European Central Bank (ECB) President Christine Lagarde warned that Europe faces an unprecedented economic threat from potential AI access cutoffs if it continues to rely on foreign countries for artificial intelligence technology. Speaking in Vienna, she argued that Europe must shift from being a mere user of AI to developing and supplying it independently.

Lagarde noted that within a few years, AI will handle various tasks such as cargo inspections at borders, selection of tax returns for audit, railway operations management, patient monitoring in hospital wards, and bank payment processing. She emphasized that if access were to be cut off or terms of use altered, the impact would be felt simultaneously across every sector.

No trading partner has ever held such leverage over Europe before, Lagarde said. She sounded the alarm that this leverage could be exploited in negotiations over tariffs and digital taxation, particularly with the United States, a key ally whose trust has been shaken by recent disputes.