Europe Will Lose the AI Century

Europe Will Lose the AI Century

A UnHerd column argues that Europe is at risk of falling behind in the global artificial intelligence race because its leaders are overly focused on regulation rather than adoption and innovation. The author, Wolfgang Munchau, suggests that while AI’s potential reshapes industries and geopolitics, Europe’s emphasis on data protection and regulatory frameworks — such as stringent privacy rules — has dampened its ability to harness and scale AI technologies compared with countries like the United States, China and India.

Munchau draws on his own experiment building a simple AI news aggregator to illustrate how AI excels not through creativity but by performing routine tasks at scale — something that could revolutionize sectors from media to manufacturing. He contends that without embracing AI widely, European economies risk missing productivity gains that could boost growth, tax revenues and competitiveness, particularly as other nations integrate AI deeply into both civilian and industrial life.

The article criticizes what it calls “European delusions” about asserting power through regulation alone, arguing that this approach slows adoption and weakens industrial edge. By contrast, China and the U.S. are rapidly adopting and deploying AI in key growth areas, from autonomous technologies to data‑driven services — strategies that could define economic strength in the coming decades.

Ultimately, the piece warns that Europe may not only lag in producing AI innovations but also in using them, because the same mindset that resisted earlier phases of AI development will limit uptake going forward. Without major shifts in investment, corporate strategy and regulatory balance that encourages experimentation and adoption, the author predicts Europe will “lose this battle” for technological leadership in the AI era.

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