Europe can’t afford to miss AI revolution: ECB chief
FRANKFURT - European Central Bank chief Christine Lagarde said yesterday that the continent could not afford to miss the artificial intelligence revolution as i
2026-08-202026-08-20By Correspondent
FRANKFURT – European Central Bank chief Christine Lagarde said yesterday that the continent could not afford to miss the artificial intelligence revolution as its growth model comes under increasing pressure.
The United States and China are seen leading the AI race, with their companies producing the most advanced large language models and rapidly building vast new data centres.
“Europe largely missed out on the first digital revolution, as the commercial gains from the spread of information and communication technologies were captured disproportionately elsewhere,” Lagarde said at a World Economic Forum event in Geneva.
“We cannot afford to repeat that experience with artificial intelligence, the second digital revolution,” said Lagarde.
While European companies are investing heavily in AI, barriers in the eurozone are hindering them from scaling up their operations, she said.
The “fragmentation” of EU markets means firms are not competing enough across the whole eurozone and also struggle to raise funds, particularly when compared to US peers, Lagarde said.
“The result is fewer firms growing to global size and slower diffusion of new technologies across the economy.”
She added that scale is particularly important for Europe to compete in AI and other new technologies at a time when Europe’s post-war growth model faces major challenges.
She noted that Europe had long benefited from “three pillars” – a rules-based global order underpinned by US security guarantees, cheap energy and expanding global trade.
– Nampa/AFP
