World Economic Forum: Europe in the Age of AI

The World Economic Forum has released its report, “Europe in the Age of AI”, highlighting strategic priorities, private sector-led lighthouse initiatives and 10 public sector “mega projects” as near-term recommendations to accelerate Europe’s competitiveness and investment climate.

Technology is increasingly shaping the prosperity and sovereignty of nations. The development of disruptive technologies such as artificial intelligence (AI), coupled with geopolitical events, are creating new competitive arenas centered around investments in innovation, production, and adoption of advanced technologies.

Between 2015 and 2022, European large companies will invest €700 billion per year, or €3,000 per capita, less than their US counterparts, especially in technology, as European companies’ return on invested capital (ROIC) lags behind the US by 4 percentage points. Europe currently competes effectively with the US and China in only four of the 14 technologies considered critical to the future of the global economy.

These gaps create a strategic dependency on Europe, with a projected funding gap of €2 to €4 trillion per year in 2040 due to foregone GDP contributions – an amount that exceeds the continent’s current annual funding needs for net zero, defence and healthcare combined.

As Europe charts a course to become more economic and technologically competitive, consensus is building on the levers needed to drive change.

The report aims to start the journey of turning ideas into action, with a focus on impact, including speed and scale. It proposes a strategic framework on how to make a difference and win; a list of private sector lighthouse initiatives to kick-start momentum; and 10 public sector “big projects” to unleash Europe’s competitiveness and entrepreneurship, aligned with six priority areas to boost innovation and investment.

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