The decision to invest €200 billion in artificial intelligence was made too late, according to Dr. Maciej Kawecki, president of the Lem Institute. He emphasizes that Europe lags behind the United States and China in terms of innovation. The key issue now is the speed and manner of fund distribution – if the resources are allocated too late, the effects of the investment may become outdated in the rapidly evolving world of AI. Additional proposals call for stopping excessive regulations and focusing on technological niches where Europe remains a leader.
In mid-February, during an artificial intelligence summit in Paris, European Commission President Ursula von der Leyen announced the launch of a new initiative, InvestAI. This initiative aims to mobilize a total of €200 billion for AI development, including the creation of a new EU fund worth €20 billion for AI gigafactories specializing in training the most complex, large-scale AI models, benefiting industries such as manufacturing. “We want to replicate the success story of the CERN laboratory in Geneva. We are providing infrastructure for high computing power. Scientists, entrepreneurs, and investors will be able to join forces. Talents from around the world are welcome. Industries will be able to collaborate and integrate their data,” von der Leyen stated.
A Decision Announced Too Late
“This decision was announced far too late, but of course, better late than never,” says Dr. Maciej Kawecki, president of the Lem Institute and director of the Innovation Center at WSB Merito University in Warsaw. “Now the question arises: how will these funds be distributed? If it follows the standard EU path, startups will receive them only in a year, and the effects of spending them will be seen in two years. By then, AI will be in a completely different place, moving towards so-called free reasoning AI, which makes abstract decisions. The world will undoubtedly change, and we will still be behind.”
A recent report, The Future of European Competitiveness, by Mario Draghi, former president of the European Central Bank, highlights the serious challenges the EU faces in technological competitiveness. Currently, only four of the world’s 50 largest technology companies are based in Europe, demonstrating the EU’s declining position in the global technology sector. Between 2013 and 2023, Europe’s share of global tech revenues dropped from 22% to 18%, while the U.S. share grew from 30% to 38%. Among the most important AI solutions worldwide, only a few have been developed within the EU. This illustrates the scale of the problem – Europe is not only failing to lead in AI but is also playing a minor role in the global technological race, lagging far behind the U.S. and China.
Too Much Regulation, Not Enough Investment
“The European Union should stop introducing further regulations on AI. We already have the AI Act, which sets ethical frameworks and boundaries. Now we should focus on investments, expenditures, scientific research, and identifying areas where the EU can be a leader. AI is not that area. This does not mean we should stop investing in AI, but we are no longer in a position to become a global leader,” assesses Dr. Maciej Kawecki.
Europe still lacks strong players in the AI market. Tools like ChatGPT (OpenAI) and Gemini (Google) were developed in the United States, and most key AI solutions are currently being advanced by American corporations. According to Mario Draghi’s report, 61% of total global AI startup funding goes to U.S. firms, 17% to Chinese firms, and only 6% to European firms.
“Our regulations are perceived as a risk factor by investment funds and investors from Silicon Valley. The European Union is associated with regulation, not innovation,” says the president of the Lem Institute.
Legal restrictions and a lack of a clear investment strategy are causing innovative European startups to relocate to the United States, where they receive better conditions for growth. According to Draghi’s report, between 2008 and 2021, 147 so-called unicorns (startups valued at over $1 billion) emerged in Europe. However, 40 of them moved their headquarters abroad, with the vast majority relocating to the U.S.
“The European Union has completely missed the development of artificial intelligence, there is no doubt about that,” states Dr. Maciej Kawecki. “By focusing on regulations, becoming dependent on the United States, and failing to develop our own AI tools, we have definitely slept through this sector. What we need today is the development of AI tools that will allow us to at least participate in the global dialogue and invest in technologies where we have a chance to be a leader.”
Quantum Technologies as Europe’s Last Opportunity?
The expert points out that the answer to this problem should not only be increased and rapid investments in AI but also the development of quantum technologies.
“The only area where it is not yet too late is the development of quantum computers, quantum cryptography, and quantum cloud computing. This is an area where Europe is still a world leader. What is happening in Finland and beginning to emerge in Poland with the creation of a quantum computer by digital military forces gives us a real chance to maintain that leadership,” says the director of the Innovation Center at WSB Merito University in Warsaw. “What we need today is AI tools that allow us to engage in global discussions and invest in technologies that offer us a leadership opportunity. The only such technology today is the development of quantum computing.”
