ECB’s Lagarde Warns Europe Must Develop Own AI to Avoid Dependency on US or China

Christine Lagarde, president of the European Central Bank, has warned that Europe must develop its own artificial intelligence technology and expand its network of datacentres to avoid becoming vulnerable to being cut off by the United States or China, according to a report by The Guardian.

Lagarde said the continent needs AI models — the underlying technology that powers tools such as chatbots — that are "good enough" to carry out most tasks and that can run from domestic datacentres, the report said.

According to the report, Lagarde argued that Europe's current dependency on foreign-built AI infrastructure could give trade partners unprecedented leverage in negotiations, potentially allowing them to threaten access to critical technology as a bargaining tool.

"If Europe invests in its own AI tech, the threat of being cut off loses its force," Lagarde was quoted as saying.

The remarks highlight growing concern among European policymakers about the continent's reliance on AI systems and computing infrastructure largely developed and controlled by American and Chinese companies. The report did not provide further detail on specific investment plans or timelines that Lagarde may have proposed.