European Central Bank President Christine Lagarde warned that Europe cannot afford to sit out the artificial intelligence revolution, saying the region's current advantages are fading, according to RTVE.es.
Speaking on Wednesday, Lagarde called for measures to ease investment and restore competitiveness so that Europe does not miss the AI boom, as reported by Spanish outlets including El Periódico and elDiario.es. She tied the continent's AI future directly to the ability of European companies to grow and scale.
Lagarde's remarks come as global competition in AI intensifies, with the United States and China pouring resources into the technology. The ECB chief argued that Europe's regulatory environment and fragmented markets are holding back its firms from competing effectively on the world stage.
According to El Correo, Lagarde linked the future of AI in Europe to the capacity of its businesses to expand. Valencia Plaza also highlighted her warning that Europe cannot afford to fall behind in the AI race.
The comments reflect growing concern among European policymakers that the region is losing ground in a sector widely seen as critical to future economic growth. Lagarde's push for easier investment and stronger corporate growth suggests a shift toward prioritizing innovation over caution in the bloc's approach to emerging technologies.
What to watch next: Whether EU leaders act on Lagarde's call by introducing policies that streamline investment and support homegrown AI champions.
