Ending European tech stagnation

As the tech revolution intensifies, Europe is finding itself on the sidelines, particularly in AI. This is a problem not only for Europe but for the broader Western alliance. As other regions surge ahead with tech-centric ambitions, the prospect of Europe fading into digital irrelevance is becoming stronger.

- YLLI BAJRAKTARI ANDRÉ LOESEKRUG-PIETRI

While US tech giants dominate the current AI landscape, Europe's own champions are few and far between. The continent that led the industrial revolution now struggles to foster globally competitive tech behemoths — not for a lack of talent or innovative spirit, but rather because a complex mix of fragmented markets, cautious investment climates, and a regulatory environment that inadvertently stifles innovation.

The result is growing dependence on external technologies and a diminished capacity to shape the digital future according to Europe's values and interests. This digital lag is as much a strategic vulnerability as it is an economic problem.

Europe's tech deficit should concern the US almost as much as European governments. After all, a technologically weakened Europe is a less capable partner in addressing global challenges, from economic competitiveness to security. The US also knows that it cannot hold back the tide of Chinese technology alone. And Europeans know that there is no alternative to US power. Each still needs the other.

As Europe and the US seek a new tech relationship, East Asian countries like Malaysia, powered by government investment and dynamic private sectors, are making enormous strides. The Middle East, too, is leveraging its resources to become a new hub for AI development and tech innovation.

This rise of new tech power centres is, in itself, a positive development, fostering global competition and innovation, but it underscores the need for Europe to reclaim its position. The greatest challenge, however, comes from China, which makes no secret of its ambitions to achieve global AI dominance by 2030.