ECB's Lagarde warns Europe cannot afford to miss the AI revolution

European Central Bank President Christine Lagarde said Europe has no room to fall behind in the artificial intelligence revolution, warning that AI technologies will be decisive for the continent's economic competitiveness. Speaking in remarks reported on Wednesday, Lagarde said a late uptake of AI would weigh on Europe's productivity and innovation capacity. She called on the region to close the gap with the United States and China in the field and stressed that any regulatory framework must be designed without stifling innovation. Lagarde also acknowledged that AI carries risks for the financial system, but said the right policies could allow the technology to deliver significant benefits to the European economy. She did not provide further details on specific measures or a timeline for action. The ECB has been increasingly vocal on the economic implications of AI, with policymakers weighing how rapid advances in generative AI could reshape labor markets, productivity and financial stability across the eurozone.