Europe must act quickly to avoid falling behind in the global race for artificial intelligence (AI) leadership, according to startups France Digitale and the European Startup Network.
Verena Pausder, president of the Startup Association, said Europe must act swiftly in the face of intense competition from AI giants in the United States and China. "The global race for AI leadership is accelerating. Europe can meet this challenge, with unity and determination," she said in a statement. "Our strength lies in our talent, our world-class research, and the potential of our integrated market. But to lead, we need to mobilize capital, scale our startups, and ensure fair competition."
The European Union and major national governments must ensure a framework that encourages innovation rather than hinders it, she said. "A fragmented approach will weaken us; a united effort will make us a global force."
France Digitale CEO Maya Noël said Europe has what it takes to be an AI leader. Working together, Europe could "leverage the capital, customers, and infrastructure needed for our AI companies to thrive and be sustainable in the long term, both economically and environmentally," she said. "Let's invest in our talents -- researchers and entrepreneurs alike -- to build the champions of today and tomorrow."
The associations called for more capital from investors to fuel growth, a pan-European program to mobilize funds, and standardized regulations in areas such as corporate law, taxation, and employment to facilitate the expansion of AI companies. They also recommend greater use of AI in the public sector and by small and medium-sized enterprises.
Currently, only a handful of European players have gained recognition in the AI industry. France's leading AI startup, Mistral AI, focuses on developing open-source language models. Germany's Aleph Alpha develops AI systems to automate processes in companies and public authorities, while Cologne-based translation specialist DeepL competes with the translation features of Google Translate and ChatGPT. Munich-based software company Helsing specializes in AI for the defense industry, with products such as a swarm-capable combat drone intended to aid Ukraine against the Russian offensive.
Despite these European successes, the gap with the United States threatens to widen. In January, three major technology companies announced they would join forces and invest $500 billion to boost AI in the United States. The new partnership, Stargate, will be formed by OpenAI, Oracle, and SoftBank.