Lagarde: Europe can still benefit from AI even if it lags behind in developing cutting-edge models.

European Central Bank President Lagarde said on Monday in Washington, "Learning from history, the greater economic return may not come from producing these tools, but from applying them in broader economic areas." She emphasized in particular the applications in manufacturing and industrial processes. She stated that in this regard, "Europe has an advantage," and cited a survey showing that EU manufacturing companies are ahead of their American counterparts in using artificial intelligence, big data, and deploying robots. Lagarde said, "Europe's industrial base - sometimes seen as a legacy of the old economy - may prove to be its most important asset." It is widely believed that Europe lags far behind the United States in the application of artificial intelligence and innovation. A report by former European Central Bank President Draghi in 2024 pointed out that one key reason for the region's low productivity is the failure to benefit from the first digital revolution.