Europe risks paying for the rapid growth of artificial intelligence in the United States without receiving an equal share of the economic benefits, Christine Lagarde, President of the European Central Bank (ECB), has warned. She also raised concerns about Europe’s growing dependence on foreign AI technology becomes increasingly important across the economy.
Speaking in Vienna on Monday, Christine said there was nothing wrong with importing technology from other countries. However, she said artificial intelligence was different as it could be used across almost every sector and often requires access to important business data.
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Christine said AI could soon become part of several important services, including border checks, tax systems, railway operations, healthcare and banking.
“Within a few years it will be screening goods at the border, deciding which tax returns are audited, dispatching trains, watching patients on wards and clearing payments at banks,” she said.
She warned that Europe could face serious problems if access to foreign AI technology was suddenly stopped or if the terms for using it were changed.
“A withdrawal of access, or a change in its terms, would then reach every sector all at once,” Christine said. “That is the kind of leverage no trade partner has ever held over Europe.”
Key Highlights
- Christine warns Europe may finance America’s fast-growing AI industry
- European households hold €440 billion in US technology shares
- Europe is falling behind US and China in AI development
Christine also pointed to the large amount of European money invested in US technology companies. She said European households hold around €440 billion (US$508 billion) in shares of US technology companies, including firms such as Nvidia and Alphabet.
“European savers are again financing the transformative technology of the age,” Christine said.
At the same time, she said Europe was behind the US and China in developing leading AI models. The US produced 59 notable AI models last year, while China produced 35. France and the UK produced one each.
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“The companies are being built elsewhere,” Christine said, highlighting the need for Europe to strengthen its own AI industry and technology infrastructure.
Her comments come as several technology leaders have also raised concerns about the speed at which artificial intelligence is developing. They have warned that highly advanced AI systems could create risks if they act outside human control or move beyond safety limits.
Dario Amodei, CEO of Anthropic, recently called for a slowdown in AI development. His call was later supported by Sam Altman, CEO of OpenAI, and Elon Musk, CEO of Tesla and SpaceX and owner of xAI.
Christine’s comments add an economic concern to the wider debate around artificial intelligence. For Europe, the issue is not only about developing AI but also about making sure that European investment, businesses and infrastructure benefit from the growth of the technology.
Her warning highlights the growing importance of AI investment, European technology, digital independence, data security and economic competitiveness as businesses and governments increasingly adopt artificial intelligence.