Lagarde Warns EU Must Develop Its Own AI To Avoid Dependence

European Central Bank President Christine Lagarde has called on Europe to develop its own artificial intelligence technology and data center infrastructure, rather than relying on the US and China. She argued that once AI becomes core infrastructure across the economy and society, access to the technology itself could be wielded as a weapon in trade and diplomatic negotiations.

Lagarde noted that last year the US developed 59 significant AI models, while China developed 35. In contrast, France and Britain each managed only one. The US currently accounts for 75% of global AI computing capacity, compared to about 5% for Europe.

Lagarde warned that if AI is used in core societal functions such as border screening, tax audits, train scheduling, patient monitoring, and bank payments, a sudden cutoff of access or change in usage terms could trigger broad economic shocks. She raised the prospect that AI could be used as a pressure tool in future negotiations over tariffs or digital taxes.