Europe is currently trailing the United States and China in the field of artificial intelligence (AI), according to discussions at the 2026 Brussels Economic Forum. Economist and 2025 Nobel laureate Philippe Aghion emphasized that AI will bring "creative destruction," a process where innovations disrupt and create industries, which if managed properly, can become an engine of social promotion.

Aghion, awarded the Nobel Prize alongside Canadian Peter Howitt and Israeli-American Joel Mokyr for research on technological innovation and economic growth, noted the economic growth differences between the European Union (EU) and the US as an example of AI's potential impact.

Luxembourg's Prime Minister Luc Frieden revealed that Europe holds approximately €12 trillion ($13.6 trillion) in household savings, a significant financial resource that could be mobilized to support AI development. However, Marlene Schörner, a financial markets researcher at the Jacques Delors Centre in Berlin, pointed out that venture capital and angel investors—specialized investors crucial for innovation—face different challenges in Europe compared to other regions.

Experts also highlighted Europe's strengths, such as superior health data compared to the US, which could enable the development of specialized AI applications in healthcare. There is an expectation for demand in more ethical AI systems that avoid certain risks, with regulations potentially making Europe a more attractive market.

Industry voices like Saueressig, speaking on DW's business podcast "The Dip," stressed the need to leverage physical AI to advance manufacturing capabilities and leapfrog existing models into the future.

The forum underscored hopes that geopolitical shifts and concerns over the reliability of the US as a partner will encourage the 27 EU member states to overcome differences and build a unified financial market to better support AI innovation.

Sources