Europe must build own AI or risk getting cut off by US or China, says ECB’s Lagarde

Central bank chief says continent’s AI dependency could give trade partners unprecedented leverage in negotiations

Europe must develop its own AI technology and build more datacentres in order to nullify the threat of being cut off by the US or China, according to the president of the European Central Bank.

Christine Lagarde said the continent needed AI models – the technology that powers AI tools such as chatbots – that were “good enough” to carry out most tasks and run from domestic datacentres. If Europe invests in its own AI tech, said Lagarde, “the threat of being cut off loses its force”.