European Central Bank President Christine Lagarde has warned that Europe faces an unprecedented risk of losing access to critical artificial intelligence technologies because of its heavy dependence on systems developed and operated outside the continent.
Speaking in Vienna, Lagarde called for Europe to build its own AI infrastructure, computing capacity and advanced models. She argued that reliance on American and Chinese technology could create serious economic and strategic vulnerabilities, particularly during periods of geopolitical tension.
Artificial intelligence is expected to become essential across healthcare, banking, transportation, border control and public administration. If European institutions and companies remain dependent on foreign providers, decisions made outside the continent could affect their access to the technology, data and computing resources required to operate.
Lagarde highlighted the scale of Europe’s technological gap. The United States accounts for an estimated 75% of global AI computing capacity, compared with only around 5% in Europe. European data-centre capacity is also insufficient, and the shortfall could increase sixfold over the coming decade if investment does not accelerate.
The ECB president said Europe must develop homegrown AI models capable of operating on European infrastructure. Such systems would reduce exposure to foreign supply disruptions while allowing the continent to apply its own rules on privacy, security, competition and data governance.
Her warning is not limited to security. Lagarde argued that faster adoption of artificial intelligence could raise European productivity by as much as 4% over a decade, strengthening economic growth and improving public finances.
Europe currently bears many of the costs created by the rapid expansion of AI while capturing a smaller proportion of its economic benefits. US technology companies dominate the sector and attract substantial international investment, while many European firms struggle to secure the capital needed to expand.
Lagarde also pointed to the financial consequences of this imbalance. The strong position of major American technology companies in capital markets contributes to the movement of European savings abroad. European pension funds and investors are increasingly exposed to US technology stocks, creating another layer of dependency.
Building independent capacity would require major investment in data centres, advanced semiconductors, energy networks, cloud services, research and professional skills. It would also require European governments to coordinate policies and reduce regulatory and investment barriers between member states.
Lagarde’s remarks add to a wider debate over European “digital sovereignty.” Policymakers increasingly argue that Europe must be capable of developing and operating essential technologies without relying almost entirely on companies headquartered in the United States or China.
Her message was clear: artificial intelligence will soon influence nearly every part of the economy and government. Unless Europe develops its own infrastructure and models, it risks becoming a user of technologies controlled elsewhere instead of an independent force in shaping the AI era.
