Lagarde Warns Europe Must Seize AI Opportunity Amid Global Competition

Christine Lagarde, President of the European Central Bank, warned that Europe cannot afford to miss the opportunity presented by artificial intelligence. Speaking at an event of the World Economic Forum in Barcelona, she stated that the continent's growth model has been eroding due to globalization, cheap energy, and a stable world order.

Lagarde pointed out that Europe was largely left out of the first digital revolution, with the commercial benefits from information and communication technologies being disproportionately captured by other parts of the world. She emphasized that 'we cannot afford to repeat this experience with AI, the second digital revolution.'

The ECB President highlighted that Europe has important strengths, including a large network of trade agreements and first-class manufacturing capabilities. However, she noted that these internal resilience must be turned into a source of more durable long-term growth, which requires better leveraging the scale of the European internal market.