LAGARDE: EUROPE CANNOT AFFORD TO MISS AI REVOLUTION

GENEVA, AUGUST 19 /SRNA/ - Europe cannot afford to miss the AI revolution, said European Central Bank /ECB/ President Christine Lagarde.

At the World Economic Forum in Geneva, she said that Europe largely missed the first digital revolution, as the commercial gains from the spread of information and communication technologies were disproportionately realized elsewhere.

"We cannot afford to repeat that experience with AI, the second digital revolution," Lagarde said.

According to her, although European companies are investing heavily in AI, obstacles in the eurozone are preventing them from expanding their operations, AFP reported.

Lagarde pointed out that the fragmentation of the EU market means that companies are not sufficiently competitive in all parts of the eurozone and are struggling to make money.

"The result is that fewer companies are reaching global size and the diffusion of new technologies in the economy is slowing down," Lagarde said.

She noted that the scale of operations is particularly important for Europe, so that it can compete in the field of modern technologies.

Lagarde added that all three pillars of the European economy - a rules-based global world order, cheap energy and expanding global trade - are weakening due to changes in the international environment, and that this is a sign that "the European post-war model is eroding" and that it is unlikely to return to the way it was previously known to the world.