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Lagarde Warns Europe Risks Its Future as It Falls Behind on AI

She called for urgent steps to lift obstacles to adoption to avoid deeper dependence on foreign providers.

Overview

  • She urged diversification of critical AI supply chains and a minimum level of chips and data‑centre capacity to prevent single points of failure.
  • She identified fragmented regulation, high energy costs and slow permits as core obstacles to building and operating the compute Europe needs.
  • A Bitkom study cited in coverage put Europe’s data‑centre capacity at 16 GW, compared with 48 GW in the United States and 38 GW in China.
  • The EU last week proposed easing parts of its AI and data‑privacy rulebook, drawing support from business groups and criticism from privacy defenders.
  • UN rights chief Volker Turk warned that generative AI could threaten rights such as privacy, political participation and free expression.