Nobel Prize-winning economist Philippe Aghion has warned that Europe is falling dangerously behind the United States and China in artificial intelligence. Speaking to DW on the sidelines of the Brussels Economic Forum, Aghion stressed that Europe must act quickly to avoid repeating the mistakes of the IT revolution.

According to Aghion, while the US fully embraced the IT revolution, Europe hesitated. As a result, per capita GDP in the US is now nearly double that of the EU. "We need to wake up," he said.

Europe excels in research but struggles to scale startups and attract venture capital. Aghion suggests applying AI to Europe's traditional strengths, such as healthcare. "We have fantastic health data in Europe, much better than in the US, and we can develop great AI applications," he noted.

Aghion also believes Europe's regulatory approach could become an advantage. "I believe there will be a demand for more ethical AI. People want protection. Some regulations will make us even more attractive," he added.

Thomas Saueressig, vice chair of SAP's board, echoed this view, telling DW's podcast "The Dip": "In uncertain times, the biggest risk is not taking a risk."

Aghion called for better research funding, more long-term financing, and increased venture capital. He also highlighted the failure of EU efforts to integrate capital markets, but said geopolitical shifts might accelerate progress.

The Nobel laureate proposed creating a European version of DARPA, the US military research agency, suggesting France and Germany could lead the initiative.

Describing himself as a "fighting optimist," Aghion warned that without a focus on education and retraining, AI's destructive potential could fuel unemployment and populism in Europe.

Source: www.dw.com