The European Central Bank president warns that Europe's reliance on AI technology from the US and China could give trade partners leverage in negotiations, urging the continent to build its own AI models and datacentres.
Christine Lagarde, president of the European Central Bank, stated that Europe must develop its own AI technology and expand datacentre capacity to reduce dependency on the US and China. She noted that the US hosts 75% of global AI computing capacity, while Europe accounts for only 5%.
Lagarde highlighted that AI adoption could boost European productivity by up to 4% over a decade but warned of economic risks if Europe remains dependent on foreign AI systems. She also pointed out that Europe currently lacks sufficient datacentre capacity to meet its needs, with the gap expected to grow significantly in the coming years.
Why it matters
ECB chief says Europe's AI dependency gives trade partners leverage, but the target does not predict the timing or size of the next interest-rate decision.
This section reflects Dumpling editorial interpretation and is provided for context only.
What to watch
Watch for euro-area inflation outlook and monetary transmission in subsequent official updates.
This section reflects Dumpling editorial interpretation and is provided for context only.