Winning the Race for AI without picking the Winners: How the EU can use industrial Policy to unlock Competition and spur AI Innovation
Winning the Race for AI without picking the Winners: How the EU can use industrial Policy to unlock Competition and spur AI Innovation

Author(s): Silke Maes
Subject(s): Supranational / Global Economy, ICT Information and Communications Technologies
Published by: EUROPEUM - Institut pro evropskou politiku
Keywords: Artificial intelligence;
Summary/Abstract: The advent of AI presents both a promise and a peril for Europe’s economic future. Widespread AI adoption across public and private sectors may lift productivity substantially. That requires European solutions adapted to local needs and languages. The peril is, however, that Europe needs strong companies in the AI value chain or otherwise the EU will lose leverage in an increasingly transactional global environment and put its long-term economic security and competitiveness at risk. At present, this outcome is more likely: The EU’s current AI strategy has failed to deliver, the European Court of Auditors (ECA) found in May 2024, citing poor coordination among member states and overreliance on national state aid and inefficient subsidies.

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