Artificial Intelligence in Europe: The Time to Decide Is Now

Artificial Intelligence (AI) is arguably the most transformative technology of our time. And yet, Europe is falling behind in the global race to lead it. Across all major disruptive technologies, Europe does not lead in a single one. The question is — why?

The answer lies largely in our stance on risk. Europe is rightly recognized for producing high-quality regulation. We’re experts in anticipating risks, protecting consumers, and prioritizing ethics. But that strength can become a weakness when it results in a culture that discourages experimentation, agility, and innovation. We regulate before we scale — and that makes us far less attractive to long-term, high-impact investment.

Investors in cutting-edge technology need three things: clarity, stability, and predictability. Yet, much of Europe’s regulatory landscape is ambiguous, particularly when addressing undefined or emerging risks. This legal uncertainty stifles innovation before it even begins.

Meanwhile, other global players are moving fast. The U.S. and China — whether through private enterprise or state-directed approaches — have created conditions for their tech giants to thrive. Google, Microsoft, OpenAI, and Anthropic all have their innovation hubs in the United States. Europe, by contrast, has only a handful of isolated examples, such as Mistral in France. These are promising, but remain as mere exceptions.

This lag comes with serious implications, but the trend is not irreversible. With the right public policies — such as specialized visas for deep tech talent — and by leveraging our strong university networks, Europe can position itself as a highly attractive ecosystem. Especially now, as global uncertainty rises, Europe’s political and social stability could become a competitive advantage — if we seize it.

Still, we must be clear: this is not about “catching up.” Europe was never ahead. It’s about defining our own path forward. And that means bold, focused action in three key areas:

• Strategic investment in foundational infrastructure, including AI chip manufacturing — the so-called “AI gigafactories.”

• Smarter regulation, using frameworks like regulatory sandboxes, which allow controlled experimentation in emerging tech.

• And most importantly, the creation of a true European digital single market. A company founded in Portugal should be able to scale across the EU without facing separate licensing requirements in Hungary, Estonia, or elsewhere. Until that happens, we’ll remain at a structural disadvantage.

What’s at stake?

Yes, Europe’s AI lag puts our businesses and economies at risk of reduced relevance in the global theatre. But the future is not written in stone. Yet. With political courage, long-term thinking, and coordinated action, we can build a competitive AI ecosystem rooted in European values — and ready for global impact. The time to decide is now.