Europe's AI Opportunity: From Ambition to Action

Kent Walker, President of Global Affairs for Google and Alphabet, addressed Politico’s Competitive Europe Summit this week. Here is a transcript of his prepared remarks. It’s wonderful to return to Brussels. Much has evolved in the past year regarding technology, geopolitics, and the discussion surrounding Europe's trajectory.

AI: A Pivotal Opportunity

At the core of this transformation lies the extraordinary potential of AI. Philosophers and economists have called it an “invention of a method of invention” – a tool that fundamentally alters how we achieve breakthroughs. AI, similar to the compound microscope that propelled chemistry and biology forward by unveiling concealed structures, will offer a fresh viewpoint for scientific advancement. Like other technologies such as coal, steam power and the internet, it will likely reshape almost every facet of our lives.

Moreover, AI is poised to shape geopolitical leadership, bolstering not only technological and economic strength but also Europe's security in an increasingly multipolar world. President von der Leyen emphasized the importance of harnessing AI effectively for the continent in her recent State of the Union address.

She is correct. Widespread AI adoption could potentially elevate the EU's GDP by more than €1.2 trillion. Our new AI Innovation Opportunity Report indicates that expediting existing innovation initiatives could unlock an additional €450 billion. But realizing this acceleration calls for focused initiatives and robust alliances involving governments, businesses, and international collaboration.

The Urgency of AI Adoption

Based on my discussions with policymakers and business leaders in Asia, emerging markets, and the United States, there's a clear sense of urgency to lead in AI adoption. While similar sentiments exist in Europe, a disparity persists between Europe's ambitious AI goals and its present actions.

Currently, European businesses face fierce global competition. The Chinese government, for instance, is investing considerably in data centers and incorporating AI throughout its economy. This approach is proving successful, with recent estimates suggesting that up to 83% of Chinese companies are already utilizing generative AI. In comparison, the European Commission estimates that adoption rates in Europe are around 14%. This represents a substantial hurdle, as European companies are hindered by intricate and costly regulations. Since 2019, the digital economy has been the target of over 100 new EU regulations. More than 60% of European businesses now consider regulation the primary obstacle to investment within the EU.

Their concerns are valid. A recent study by the Danish government suggests that new regulations could impose an additional €124 billion in annual expenses on European businesses and public administration. Unfortunately, progress in streamlining these regulations has been slow. A year after Mario Draghi's recommendations to boost EU competitiveness, only 11.2% of his proposals have been implemented. Furthermore, internal barriers within the Single Market exacerbate the situation. An International Monetary Fund study revealed that these barriers effectively translate to a 45% tariff on goods and a 110% tariff on services within the EU market.

Therefore, we must confront escalating global competition, geopolitical pressures, and regulatory complexity. Let’s tackle these challenges head-on with a three-part strategy, beginning with establishing a solid foundation. For over 25 years, Google has actively contributed to Europe, with 30,000 employees, seven data centers, 13 cloud regions, and six subsea cables supporting the region's digital economy. We are dedicated to ensuring Europe not only participates in the AI revolution but also spearheads it. Europe possesses vital components for success, including a skilled talent pool, esteemed universities, and a single market capable of facilitating innovation on a grand scale.

A Three-Part Strategy

But to build for the future, you need to establish the supportive framework necessary for innovation to thrive. We can come together to create that.

1. Simplify Regulations

The time for simplification is now. We must concentrate on creating focused, aligned, and balanced regulations. Focused regulation that fosters AI innovation means addressing the tangible effects of AI. This entails addressing regulatory gaps instead of imposing extensive rules that stifle beneficial, lower-risk applications of AI. We should monitor outputs and manage risks rather than micromanaging science.

Effective regulation also needs alignment. We can enable AI model providers to create AI in Europe and offer their most advanced models to European businesses and people by using existing regulations for AI applications and harmonizing international frameworks. Good regulation is also balanced, particularly at this early stage of the technology. While regulation should aim to mitigate harm, it should also encourage innovation and unleash AI's enormous potential.

We must reevaluate outdated regulations that may be impeding progress. Efforts such as harmonizing cybersecurity reporting and the forthcoming Digital Omnibus Packages represent encouraging steps toward this objective, provided they incorporate significant simplifications and consider businesses of all sizes. Critically, the European Commission seeks your input in shaping this agenda, so be sure to share your views by October 14. Addressing this effectively is crucial. Our recent report with Implement indicates that up to 40% of AI's innovation potential hinges on the expansion of Innovative Digital Businesses within Europe. European businesses and entrepreneurs consistently emphasize that aligning rules, streamlining regulations, and reducing administrative burdens would greatly enhance their global competitiveness. Therefore, establishing a robust regulatory foundation is essential.

2. Build Adoption

From there, we can shift to step two: It’s time to build. And by that I mean: Get people and companies using these tools.

Let me quantify how much and how fast technology is changing: Our new AI models are not just more capable, but 300x more efficient than the state-of-the-art from just two years ago. Not 300% —300x. But with so much change happening so fast, we have to make sure we’re bringing people along and focusing on adoption as much as invention.

In the short term: We need to be working now to expand opportunity by focusing on skilling. In the long run: We need to be partnering to bring entirely new categories of jobs online.

Public-private partnerships can accelerate the short term skilling objective — and I’m pleased to report that work is well underway. Over the last decade, Google has collaborated with governments to provide over 14 million Europeans with digital skills to support their businesses or careers. Also, our €15 million AI Opportunity Fund collaborates with civil society to offer foundational AI skills training to the most vulnerable Europeans. While individual companies can initiate pilot projects, governments will play a key role in scaling up the most successful initiatives. Public-private partnerships can prepare the current workforce for AI, while long-term success depends on cross-sector collaboration to create the jobs of the future. The evolution of work is continuous. Sixty percent of jobs today did not exist 80 years ago. We have an opportunity to accelerate this cycle of creation, creating innovative products and services that will establish our competitive advantage. Providing people with the appropriate skills and increasing the variety of available jobs are essential during this adoption phase. It’s also important to instill trust in the AI tools people and businesses use. Companies must provide safe and reliable tools to foster trust. Google achieves this by offering Sovereign Cloud and AI solutions. We ensure that European data is managed according to local requirements and in accordance with European values by giving customers complete control over their data storage locations. Crucially, we deliver these solutions through strong business partnerships with European leaders like Schwarz Group in Germany, Telecom Italia in Italy, Thales in France, and Minsait in Spain. As people become more familiar with these tools, we will be able to increase the pace.

3. Scale Up

Now for the fun part, scaling up. The potential of AI extends far beyond chatbots, which represent only a fraction of its capabilities. Scientific advancements are where the real impact lies. Google DeepMind's AlphaFold, for example, is driving significant progress in biology and healthcare. The AlphaFold Protein Database includes nearly every protein known to science and is used by over three million researchers worldwide. Researchers at the University of Malta are utilizing AlphaFold's extensive database to gain insights into the genetic origins of osteoporosis. Globally, tools like Google DeepMind AI tool, GNoME, are transforming materials science, discovering hundreds of thousands of new materials and paving the way for innovations in energy, transportation, and clean water. Polling data shows that increased AI usage correlates with greater optimism about the technology. Whether it’s the doctor at the Princess Máxima Center in the Netherlands using Google Gemini AI models to designmore personalized cancer treatments for pediatric patients, or the farmers across the EU using AI to design and monitor their fields for greater yields andmore efficient fertilization. People are seeing how AI can solve problems, speed up tasks, and uncover insights. Maintaining this momentum through collaboration is crucial.

Seizing the Moment

European leaders emphasize that AI leadership is a top priority, and it's time to turn those aspirations into reality. We can achieve this by removing obstacles for European innovators, collaborating to expedite research, and expanding the adoption of cutting-edge AI tools to spark a new era of growth and innovation. The potential is evident, the tools are accessible, and we are committed to partnering to help Europe seize the moment.