Europe has so far played a relatively small role in the global debate over AI safety, despite the EU’s strong regulatory influence. Its reliance on AI models from the US and China limits its ability to shape technological development. European policymakers face a dilemma: AI can drive economic growth, but it can also increase dependence on foreign technology. Taking too cautious an approach, however, risks leaving Europe behind.

Christine Lagarde is therefore calling for greater investment in homegrown AI technology. Greater autonomy would also give Europe a chance to develop its own response to the AI safety crisis. A report involving former EU Commissioner Margrethe Vestager, among others, calls for the construction of more data centers and greater resilience across the continent. Vestager sees the EU AI Act as an important and rare tool for regulating the use of high-risk AI systems.