Christine Lagarde, President of the European Central Bank (ECB), warned that Europe must not be left behind in the unfolding artificial intelligence (AI) revolution after the continent missed out on much of the gains from the first digital transformation, Bloomberg reported.
Speaking at the World Economic Forum’s Geneva centre, Lagarde said that the business benefits from the spread of information and communication technologies were largely captured by other regions in the previous wave of digital change. "We cannot afford to repeat that experience with artificial intelligence, the second digital revolution," she said.
Lagarde also pointed to encouraging signs. Referring to survey data, she said that firms in the euro area are allocating roughly 9 percent of their total investments this year to artificial intelligence, suggesting that European companies have started to step up investment in the technology.
Why this matters
- Lagarde’s warning highlights the importance of AI for economic competitiveness and future growth: lagging behind in AI adoption and investment can translate into a sustained competitive disadvantage.
- Her remarks are directed not only at companies but also at policymakers, since regulation, education and the financing environment will influence how well Europe can harness AI’s potential.
According to the Bloomberg report, Lagarde’s speech underscored that while there are initial positive signs of investment, further efforts are required to achieve broader adoption and to support innovation across the region.
Note on article preparation
An AI assistant participated in the preparation of this article; the final content was edited and verified by our journalist.
