EU’s competitiveness and economic growth through AI

Artificial intelligence, and more specifically generative AI, is set to revolutionize the global economy, reshaping industries, labour markets, and our societies. By embracing AI’s potential, the EU can ensure its competitive edge, driving sustainable economic growth while reinforcing its role as a global technological leader. However, this future is not guaranteed. AI raises many questions – socially, ethically but especially economically.

Whether Europe can fully leverage AI to boost its economy hinges on the access of this technology, which is currently concentrated in the hands of a few dominant players.

The EU has led the world in regulating AI, becoming the first continent to adopt a comprehensive framework. The AI Act represents a bold approach that seeks to encourage innovation while safeguarding fundamental rights, ensuring trust in AI systems. However, as we regulate, we must also recognize the deeper competitive challenges AI poses to Europe’s digital future.

A disruptive technology rooted in continuity

AI is the first technology to be dominated, from the outset, by a few major players. The vast amounts of personal and non-personal data controlled by Big Tech firms enable them to fine-tune their AI models, creating a feedback loop of data accumulation and technological superiority. These companies have built an insurmountable lead thanks to their control over critical assets like data and cloud infrastructure, which are essential for AI development. This dominance raises serious concerns about the fairness of competition, not only within the AI sector but across the entire economy.

If left unchecked, AI risks exacerbating existing monopolistic tendencies, creating even greater barriers to entry for European start-ups and SMEs.

Instead of fostering a vibrant ecosystem of innovation, AI could end up deepening the structural power of a few global corporations.

In the recent conclusions of the G7 summit, world leaders highlighted that, while AI can drive growth, it must not exacerbate market concentration or create new digital monopolies. Instead, governments must globally work together to establish rules that promote innovation while safeguarding competitive markets.

Europe, with its leadership in AI regulation, has the chance to set the global standard in this space.

Regulation as the pathway to Europe AI’s leadership

Europe could become a passive user of AI technologies, losing its agency over this critical technological shift and becoming dependent on foreign tech giants. To counter this, competition must be at the heart of Europe’s AI strategy. A diversified and competitive AI ecosystem is essential. We need to democratize access to the tools necessary for innovation, enabling a broader range of developers and companies, especially in Europe, to participate in AI development. They need access to flexible, modifiable AI models—resources that should not be locked behind the walls of proprietary software owned by tech giants.

Europe might have missed the wave of social networks, search engines but we must not miss the opportunity of having European champions in AI.

Competition policy, through the Digital Markets Act and the work of the European Commission and National Competition Authorities, should address quickly the growing dominance of Big Tech, promoting a level playing field where all European innovators can thrive.