In a keynote address delivered in Bratislava on 24 November 2025, Christine Lagarde, President of the European Central Bank (ECB), focused on how artificial intelligence (AI) presents a pivotal opportunity — and challenge — for Europe’s economy. She drew a parallel to economist Robert Solow’s remark from 1987 that “you can see the computer age everywhere but in the productivity statistics.” Lagarde argued that while AI is advancing rapidly, its visible impact on productivity and growth remains muted.
Lagarde highlighted the surge in global corporate investment into AI — with private firms raising unprecedented amounts of capital and companies that were little known a decade ago now dominating AI expenditures. Yet, she noted, this investment alone doesn’t guarantee broad-based productivity improvements or equitable benefits across Europe. The potential rewards are there, but so are the risks of lagging behind globally if Europe does not act decisively.
She called attention to the fact that Europe’s current growth model — heavily reliant on exports and traditional manufacturing — is under threat. AI, she suggested, could be the lever that helps reshape Europe’s industrial base, connects human talent with data and computation, and supports the transition to more knowledge- and data-intensive sectors. The timing, she argued, is now.
In closing, Lagarde urged policymakers, businesses, and educational institutions across Europe to engage in coordinated action: investing in digital infrastructure, nurturing talent, ensuring regulation keeps pace, and embracing innovation. She framed AI not just as a technological shift, but as an economic and societal inflection point — Europe must “deploy the moment” to shape how the future unfolds.
