France intends to invest $112.5 billion in AI over coming years since Europe cannot afford to miss another technological revolution. Of course, the US leads the AI revolution with its Big Tech and Nvidia chips, and China is the number 2 contender. Europe, the old continent, seems to be already overtaken by events.
All is not lost. Much depends on using and diffusing AI so as to get the benefits of enhanced productivity. Researchers say what matters is the implementation of technology, and not necessarily the pioneer advantage. Academic institutions can reverse the backslide by augmenting and employing the inventions. The US did this in the early 20th century by overtaking the leaders in machine tools such as Britain and Germany.
Europe already enjoys in incidentally an advantage of talented manpower and reputed institutions. European companies can act as agents of change
On the stock market, there is the digital divine where US investments lead the European investments in automation. In retail, Walmart’s capital expenditure is increasing, whereas that of Carrefour is declining. It is this kind of challenge that Europe will have to resolve.
Ever since 1995, US productivity growth has outpaced that of Euro area, and may continue to do so. That should not deter the European leaders to lose a chance to revive the European economy. AI laggards can win the long game of adoption and innovation, since it is a Marathon.
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