EU Economy and Finance

It's a wrap for #EUBEF26! The Brussels Economic Forum has come to an end. Thank you for watching, we hope that you enjoyed the debate. See you next year at #EUBEF27.

❓More or less EU regulation on AI? - this was the final question at the Brussels Economic Forum. 🆚 In an Oxford-style debate Marietje Schaake argued for, while Fredrik Erixon argued against more EU rules on the development of artificial intelligence. The goal was for the speakers to convince the audience of their line. Starting the debate with 87% of the audience in favour of more EU regulation, Marietje Schaake argued that there are big tradeoffs when it comes to AI development: public vs private financing, security vs innovation, environment vs industry, but these tradeoff decisions are primarily made by big tech companies of which the EU doesn't have many. 'Democratic regulation is what is needed', she added. 🆚 Fredrik Erixon painted a gloomy picture of the AI situation in the EU: 'We are behind technological progress, our workers use AI less than in the US. Our productivity grows slower and income development is poorer.' Erixon said that the EU is overregulated, not only by AI act, but by other EU legislation. He believes that this hinders the EU and makes AI less accessible for people. After the debate, 54% remained in favour of more regulation.

Europe is not leading the AI race in technological terms, but its democratic oversight, regulatory environment and sensitivity to children, society and climate put the EU in the forefront of the global AI competition - this is what all participants agreed at #EUBEF26 in a panel discussion about Europe's place in the global AI race. MEP Eva Maydell (Paunova) believes that lagging behind doesn't meant that Europe is irrelevant. The EU has a unique advantage: deep industrial base, high quality data and strong research. She added, the key is energy in an acceptable price, this would be needed for Europe to be able to scale. The governor of the Bank of Latvia agreed with the problem of expensive energy, on the other hand he said 'Europe was not doomed. We have the democratic oversight, we have talent, we have specialised models.' Mārtiņš Kazāks added that Europe lacks infrastructure, cloud centres, and more importantly, European financial markets are not fit for the purpose, 'they are too dependent on banks.' Noreena Hertz, honorary professor for UCL Policy Lab raised the question of what AI race exactly Europe wants to win. 'If the race is big frontier models, we are behind. If the race is to ensure AI doesn’t harm our children, society, climate, the EU has a good chance.' Hertz challenged the recurring question: innovation or regulation by saying that these 2 are not necessarily enemies. 'In China, for example, the AI sector is heavily regulated but they are still innovating incredibly well. Founder and CEO of Nextcloud has brought it even farther: 'I completely disagree that EU regulation makes it impossible to compete as entrepreneurs in Europe.' Frank Karlitschek said what is missing is the enforcement of legislation. He would also unlock the capital market and have a better transition between research and the private sector. The CEO of semiconductor manufacturer Infineon Technologies praised Europe's regulations, but would speed up the pace in innovation. Jochen Hanebeck added that we have to build competences as there are many facets to the AI sector that Europe can play a role in. 'Let's make sure we are at the table.'

A series of visionary speakers took the floor at the Brussels Economic Forum to analyse different aspects of AI and the European economy. How can we get economic growth with AI without the usual harmful effects? Professor Daniel Susskind, in a visionary talk at #EUBEF26 said that economic growth is driven by tech progress, so in order for Europe to stay in the race, we need 🖇️intellectual property reform 🔬more R&D for more ideas 💡to channel labour capital to ideas 🧑💻tech to help generate ideas. AI is not replacing humans, said Dr. Milagros Miceli in a visionary talk at the Brussels Economic Forum. She said "nobody was fired because of AI, it is still a managerial decision". The research lead at The Distributed AI Research Institute (DAIR) added: 'AI will always need the input of humans.' Chair for Law and Ethics of the Digital Society at European University Viadrina raised the alarm for AI to be environmentally sustainable. Philipp Hacker said we needed more AI data centres, but not at any cost. 'Let’s not over-prioritise data centres on the energy grids.'

Commissioner Valdis Dombrovskis has opened a panel discussion at the Brussels Economic Forum by setting the scene: harnessing the benefits of AI could 🏭boost productivity; 🧑🔧harness employment potential 💶mobilise funds 🔬ensure that our regulatory regime encourages innovation and 📈maintain financial security in the face of threats. The Commissioner believes that AI development could be beneficial for Europe, but he is worried about ageing population, shrinking workforces, and AI potentially cutting jobs. Chairman of the Board of Management at Bosch argued that most innovations in the past didn’t bring job cuts, quite the opposite, they brought more jobs. 'In every technological revolution transition there are people who lose jobs and people who get new jobs that didn’t exist before.' Stefan Hartung said that companies have to provide employees with the most modern tools, but if they can't because of regulation, 'talent will go elsewhere or found a startup with that tool.' The Deputy-Secretary General for CES - ETUC defended European workers. Isabelle Schömann said that there was a clear intensification of work with AI adoption, rather than shorter working time. 'The ETUC says yes to technological revolution, but with the full respect of workers/trade unions rights.', she added. Financial Times commentator Martin E. Sandbu highlighted the need for smart regulation of AI in Europe. He raised the question: 'What kind of society do we want AI to be used for?' He believes there’s nothing wrong with saying there are certain things we don’t want to be done in Europe. 'Less is more is not necessarily the right approach.', he added. The CEO of Open Data Institute, Louis Burke argued that AI development is data-driven, and in order to make systemic change, there is a need for long-term investment, to make infrastructures ready for innovation. #EUBEF26

Even though Europe is lagging behind in the global AI-race, but there is still a huge economic and employment potential for the EU in the further development of artificial intelligence. Nobel-laureate Philippe Aghion gave a passionate speech at the Brussels Economic Forum, expressing that 'a large share of research underlying tech innovations is done in Europe but does not result in breakthroughs in Europe.' Though the US and China are leading in innovations, Philippe Aghion said 'In Europe we have a huge advantage: democracy and freedom. This is no longer the case in the US. It is in Europe.' Aghion disagrees with a growing consensus among economists that AI does not have huge growth impact. Instead he believes that AI does have a great growth potential, as well as an employment potential. 'Concern for the climate and social model can help us attract talent to the old continent.' He also sees a big hope in AI for reducing the wealth gap between the EU and the US. 'We can push for a more ethical and more human AI. We have everything it takes to become technological leaders again, with the right purpose.', added Aghion. #EUBEF26

Luxembourgish Prime Minister Luc Frieden has called for Europe to take a more active part in the global AI race. Speaking at the Brussels Economic Forum #EUBEF26, he said 'Europe is not destined to be the third in a race between US and China. He believes that as artificial intelligence influences all aspects of our life, it also has to reflect the European way of life, grounded in democracy, rule of law and freedom of press. 'We must lead, because we need artificial intelligence OF Europe, BY Europe, and FOR Europe.' He doesn't think that pushing for European champions in AI is protectionist. 'It is pro-competition. We need a European alternative that can compete with foreign companies in our single market.' Luc Frieden said there was a need for regulation, but not over-regulation. 'This does not mean regulating to the point where there is no more innovation. It means guardrails that keep AI aligned with our values. Let's combine regulation with innovation.'

🔴LIVE NOW! The 26th Brussels Economic Forum has just kicked off. Follow the debate all day about the impact of AI on the European economy. 🎥Check the programme, tune in and watch #EUBEF26 live: https://lnkd.in/eC2CGhRj

🔴 WATCH LIVE today 7 May, starting at 9AM CET! Join the European Central Bank and European Commission joint conference on European Financial Integration, with a focus on advancing the Savings and Investments Union. 🎤 Keynote speeches by: ▪️ Commissioner Maria Luís Albuquerque ▪️ Luis de Guindos, Vice-President of the ECB 📺 Webtream & agenda: https://lnkd.in/dJkn3KFt #DGFISMA #EFSIR

💪We are almost ready. The Brussels Economic Forum will kick off tomorrow at 10.30. By then all tables, microphones and keynote speakers will have taken their place😁, so a meaningful debate can start on the AI economy and the EU. 🎥Tune in and follow the forum live: https://lnkd.in/eC2CGhRj