Europe must build own AI or risk getting cut off by US or China, says ECB’s Lagarde

Europe’s growing reliance on foreign AI technology could leave the continent vulnerable to trade disruptions, warns the president of the European Central Bank. Urging greater domestic investment, the official argues that developing independent AI models and expanding local datacentre capacity would reduce dependence on external powers like the US or China. Without such measures, Europe risks losing negotiating leverage if supply chains or access to critical AI tools are restricted. The call comes as concerns mount over strategic autonomy in digital infrastructure.

Central bank chief says continent’s AI dependency could give trade partners unprecedented leverage in negotiationsEurope must develop its own AI technology and build more datacentres in order to nullify the threat of being cut off by the US or China, according to the president of the European Central Bank.Christine Lagarde said the continent needed AI models – the technology that powers AI tools such as chatbots – that were “good enough” to carry out most tasks and run from domestic datacentres. If Europe invests in its own AI tech, said Lagarde, “the threat of being cut off loses its force”. Continue reading...