Lagarde Warns: Europe Must Produce AI Tech to Avoid Vulnerability

European Central Bank President Christine Lagarde has emphasized the need for Europe to become self-sufficient in artificial intelligence technology. In a speech in Vienna, she stated that relying on imported AI from the US creates vulnerability and could be used as leverage in negotiations.

Lagarde noted that AI will soon be integrated into various aspects of life, including customs clearance, tax audits, train dispatching, patient monitoring, and bank payments. A withdrawal of access to this technology or a change in its terms would have far-reaching consequences for Europe's economy and standard of living.

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