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European Central Bank head urges homegrown AI models

Christine Lagarde, president of the European Central Bank, warned that Europe could be left vulnerable if it keeps relying on US and Chinese artificial intelligence. She said more datacentres and locally-developed AI models are needed to avoid the risk of being cut off—which would hit every sector at once. Lagarde said adopting homegrown AI could boost productivity by up to 4% over ten years.

Why it mattersEurope’s economic independence may hinge on whether it can control its own AI tools. Relying on other countries could give them unexpected power in future negotiations.

Sources covering this

Economic Times TechEurope facing unprecedented risk of being cut off from AI, Lagarde warns6:35 PMThe GuardianEurope must build own AI or risk getting cut off by US or China, says ECB’s Lagarde6:41 PM
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