Lagarde Urges Europe to Develop Its Own AI Technology

European Central Bank President Christine Lagarde has emphasized the need for Europe to become a producer of artificial intelligence technology. Speaking in Vienna, Lagarde noted that European companies currently rely on importing AI technology from abroad, particularly from the United States. This creates vulnerability if access is restricted and could threaten various sectors.

Lagarde warned that within a few years, AI will be used for tasks such as screening goods at borders, auditing tax returns, dispatching trains, monitoring patients, and clearing payments at banks. She stated that a withdrawal of access or change in terms would have significant leverage over Europe, potentially impacting negotiations on tariffs and digital taxes.

The solution, according to Lagarde, involves building more European computing capacity. If implemented quickly, AI could increase productivity levels by up to 4% over a decade, which would be transformative for public finances.