In his vision for the future of Europe, former European Central Bank President Mario Draghi has championed the transformative role of Artificial Intelligence (AI) as key to driving Europe’s competitiveness on the global stage. As European industries face increasing competition from China and the United States, Draghi emphasized that Europe must act swiftly to harness AI and robotics to boost productivity and safeguard its position in advanced technologies.
Speaking at a summit on European innovation, Draghi warned that Europe risks falling behind if it does not fully embrace the AI revolution. “We are on the cusp of a major transformation,” he stated. “AI is not just an option—it’s the way forward if Europe is to remain competitive in the global economy.”
Europe’s AI Potential
Europe currently lags behind the U.S. and China in digital technology, with only a small share of the global tech market. Draghi highlighted that despite Europe’s historical strengths in areas like automotive and pharmaceuticals, it has struggled to scale its innovations in AI and robotics. Only four of the world’s top 50 tech companies are European, and the EU’s share of global tech revenues has fallen from 22% to 18% over the last decade.
Yet, the former central banker sees a path forward. According to Draghi, Europe still holds strong potential in areas such as autonomous robotics, where it accounts for 22% of global activity. He believes that AI could revolutionize industries like pharmaceuticals, automotive, and energy, driving gains in efficiency, productivity, and innovation. “AI will be the critical factor in unlocking higher productivity, helping Europe retain leadership in sectors like pharmaceuticals and energy,” Draghi said.
Productivity and Economic Growth
One of the key points Draghi stressed was the link between AI and productivity. Europe’s productivity growth has stalled over the past two decades, a trend that Draghi sees as reversible with the right technological investments. AI, he noted, has the potential to optimize supply chains, improve vehicle designs, and even revolutionize medicine through AI-powered diagnostic tools.
However, he cautioned that Europe must invest not only in AI but in creating the necessary infrastructure to allow AI innovations to flourish. “We need to break down the barriers preventing our innovative companies from scaling up. AI will only benefit Europe if we can commercialize these breakthroughs,” Draghi urged.
Addressing Social Concerns
Despite the optimism surrounding AI, Draghi acknowledged the concerns raised by workers about the potential for job displacement. Surveys show that 70% of European workers favor restrictions on AI to protect employment. Draghi stressed the need for Europe to adopt a balanced approach, ensuring that AI’s benefits are widely shared. “We must provide workers with the skills and training needed to thrive in an AI-driven economy,” he said, advocating for education and lifelong learning to be integrated into the AI strategy.
The Way Forward
To remain competitive, Draghi called for coordinated action across the EU, including harmonizing regulations, increasing investment in AI startups, and ensuring a strategic focus on AI’s integration across industries. “Europe has the resources and talent; now we need the political will to make AI the cornerstone of our industrial strategy,” he concluded.
