AI can boost growth and make Europe more competitive

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"Hero Menu", "section_header": "AI can boost growth and make Europe more competitive" }'> <div class="article-meta__author-wrapper"> <div class="article-meta__abstract"> <div class="article-meta__abstract-aside"> <div class="article-meta__published-wrapper"> <p class="article-meta__published-at uni-body--small">Oct 01, 2024</p> <span aria-hidden="true" class="article-meta__separator">·</span> <p class="article-meta__read-time uni-body--small" data-reading-time-render>[[read-time]] min read</p> </div> <div class ="uni-social-share uni-social-share--mobile" data-component="uni-social-share-dropdown" > <a aria-label="Share" class="uni-social-share__trigger" role="button" tabindex="0" aria-expanded="false" data-analytics='{ "event": "page interaction", "category": "social", "action": "menu", "label": "label" }'> <svg aria-hidden="true" class="h-c-icon h-c-icon--color-text" title="Share" > <use xmlns:xlink="http://www.w3.org/1999/xlink" 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href="https://www.linkedin.com/shareArticle?mini=true&url=https://blog.google/around-the-globe/google-europe/ai-boosting-growth-in-europe/&title=AI%20can%20boost%20growth%20and%20make%20Europe%20more%20competitive" target="_blank" data-analytics='{ "event": "page interaction", "category": "social", "action": "share", "label": "linkedin" }' data-ga4-method="linkedin"> <svg aria-hidden="true" class="h-c-icon h-c-icon--social h-c-icon--30px" viewBox="0 0 30 30" > <use xmlns:xlink="http://www.w3.org/1999/xlink" href="/static/blogv2/images/icons.svg?version=pr20241113-1756#social-linkedin"></use> </svg> <div class="article-share__title">LinkedIn</div> </a> <a aria-label="Share with Email" class="article-share__link-text uni-click-tracker article-share__email" href="mailto:?subject=AI%20can%20boost%20growth%20and%20make%20Europe%20more%20competitive&body=Check out this article on the Keyword:%0A%0AAI%20can%20boost%20growth%20and%20make%20Europe%20more%20competitive%0A%0ANew Google commissioned research states that Generative AI could add €1.2-1.4 trillion to the EU's GDP in 10 years and improve productivity across sectors. However, Europe must prioritize AI research, infrastructure, and training to fully realize these benefits and ensure everyone benefits.%0A%0Ahttps://blog.google/around-the-globe/google-europe/ai-boosting-growth-in-europe/" target="_blank" data-analytics='{ "event": "page interaction", "category": "social", "action": "share", "label": "email" }' data-ga4-method="email"> <svg aria-hidden="true" class="h-c-icon h-c-icon--social h-c-icon--30px" viewBox="0 0 30 30" > <use xmlns:xlink="http://www.w3.org/1999/xlink" href="/static/blogv2/images/icons.svg?version=pr20241113-1756#social-mail"></use> </svg> <div class="article-share__title">Mail</div> </a> <div class="copy-link uni-copy-share uni-click-tracker" data-component="uni-copy-popup-component" data-analytics='{ "event": "page interaction", "category": "social", "action": "share", "label": "copy" }' data-ga4-analytics-share-copy-link data-ga4-method="Copy link"> <button class="copy-link__trigger copy-link__trigger-text" data-ga4-method="Copy link" title="Copy link"> <svg class="h-c-icon h-c-icon--color-text" role="presentation" title="Copy link" > <use xmlns:xlink="http://www.w3.org/1999/xlink" href="/static/blogv2/images/icons.svg?version=pr20241113-1756#social-link"></use> </svg> <div class="copy-link__title">Copy link</div> </button> <div class="copy-link__dialog copy-link__content" uni-options='{"copyTextButton": "COPIED TO CLIPBOARD"}' aria-hidden="true" tabindex="-1"> <input class="h-c-copy copy-link__url" value="https://blog.google/around-the-globe/google-europe/ai-boosting-growth-in-europe/" id="copy-link" readonly="readonly" type="text"/> <div class="copy-link__copy-message" role="status"></div> </div> </div> </div> </div> </div> <p class="article-meta__abstract-text uni-body--large"> New research underlines the impact that AI can have on boosting European economic growth, competitiveness and productivity. To harness this opportunity Europe needs to take a number of urgent actions. </p> </div> </div> <div class="article-meta__container"> <div class="article-meta__content"> <a class="article-meta__author author-active" href="https://blog.google/authors/matt-brittin/" aria-label="Matt Brittin, President, Google Europe, Middle East and Africa" data-analytics-onclick='{ "event": "page interaction", "category" : "perspective author", "action" : "perspectives - author byline", "label" : "Matt Brittin", "contentType": "article page" }' data-ga4-analytics-perspective-author-click='{ "link_text": "Matt Brittin", "link_url": "https://blog.google/authors/matt-brittin/" }' > <figure class="article-meta__author-photo"> <picture> <source media="(max-resolution: 1.5dppx)" sizes="122px" srcset="https://storage.googleapis.com/gweb-uniblog-publish-prod/images/Matt_Brittin.max-122x92.format-webp.webp 122w"> <source media="(min-resolution: 1.5dppx)" sizes="244px" 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href="mailto:?subject=AI%20can%20boost%20growth%20and%20make%20Europe%20more%20competitive&body=Check out this article on the Keyword:%0A%0AAI%20can%20boost%20growth%20and%20make%20Europe%20more%20competitive%0A%0ANew Google commissioned research states that Generative AI could add €1.2-1.4 trillion to the EU's GDP in 10 years and improve productivity across sectors. However, Europe must prioritize AI research, infrastructure, and training to fully realize these benefits and ensure everyone benefits.%0A%0Ahttps://blog.google/around-the-globe/google-europe/ai-boosting-growth-in-europe/" target="_blank" data-analytics='{ "event": "page interaction", "category": "social", "action": "share", "label": "email" }' data-ga4-method="email"> <svg aria-hidden="true" class="h-c-icon h-c-icon--social h-c-icon--30px" viewBox="0 0 30 30" > <use xmlns:xlink="http://www.w3.org/1999/xlink" href="/static/blogv2/images/icons.svg?version=pr20241113-1756#social-mail"></use> </svg> <div class="article-share__title">Mail</div> </a> <div class="copy-link uni-copy-share uni-click-tracker" data-component="uni-copy-popup-component" data-analytics='{ "event": "page interaction", "category": "social", "action": "share", "label": "copy" }' data-ga4-analytics-share-copy-link data-ga4-method="Copy link"> <button class="copy-link__trigger copy-link__trigger-text" data-ga4-method="Copy link" title="Copy link"> <svg class="h-c-icon h-c-icon--color-text" role="presentation" title="Copy link" > <use xmlns:xlink="http://www.w3.org/1999/xlink" href="/static/blogv2/images/icons.svg?version=pr20241113-1756#social-link"></use> </svg> <div class="copy-link__title">Copy link</div> </button> <div class="copy-link__dialog copy-link__content" uni-options='{"copyTextButton": "COPIED TO CLIPBOARD"}' aria-hidden="true" tabindex="-1"> <input class="h-c-copy copy-link__url" value="https://blog.google/around-the-globe/google-europe/ai-boosting-growth-in-europe/" id="copy-link" readonly="readonly" type="text"/> <div class="copy-link__copy-message" role="status"></div> </div> </div> </div> </div> </div> </div> </div> <div class="article-image-hero"> <div class="article-image-hero__container"> <figure class="article-image--full-aspect article-module"> <div class="aspect-ratio-image" style="--height-percentage: 41.7%;"> <div class="aspect-ratio-image__container"> <img srcset="https://storage.googleapis.com/gweb-uniblog-publish-prod/images/EU27_Hero_1.width-600.format-webp.webp 600w, https://storage.googleapis.com/gweb-uniblog-publish-prod/images/EU27_Hero_1.width-1200.format-webp.webp 1200w, https://storage.googleapis.com/gweb-uniblog-publish-prod/images/EU27_Hero_1.width-1600.format-webp.webp 1600w" sizes="(max-width: 599px) 100vw, (max-width: 1023px) 600px, 1024px" src="https://storage.googleapis.com/gweb-uniblog-publish-prod/images/EU27_Hero_1.width-1200.format-webp.webp" fetchpriority="high" alt="Abstract image showing a grey space with coloured dots and lines in green, blue, yellow and red, to symbolise AI" class="aspect-ratio-image__image"> </div> </div> </figure> </div> </div> <section class="uni-container article-container"> <div class="uni-wrapper article-container__wrapper"> <div class="uni-content uni-blog-article-container article-container__content " data-reading-time="true" data-component="uni-article-body"> <google-read-aloud-player data-analytics-module='{ "event": "module_impression", "module_name": "ai_audio", "section_header": "AI can boost growth and make Europe more competitive" }' data-date-modified="2024-10-03T11:17:41.781236+00:00" data-progress-bar-style="half-wave" data-api-key="AIzaSyBLT6VkYe-x7sWLZI2Ep26-fNkBKgND-Ac" data-article-style="style9" data-tracking-ids="G-HGNBTNCHCQ,G-6NKTLKV14N" data-voice-list="en.ioh-pngnat:Cyan,en.usb-pngnat:Lime" data-layout-style="style1" data-highlight-mode="word-over-paragraph" data-highlight-text-color="#000000" data-highlight-word-background="#8AB4F8" data-highlight-paragraph-background="#D2E3FC" data-background="linear-gradient(180deg, #F1F3F4 0%, #F8F9FA 100%)" data-foreground-color="#202124" data-font="600 16px Google Sans, sans-serif" data-box-shadow="0px 1px 3px 1px rgba(60, 64, 67, 0.15)" style=min-height:55px;display:block;max-width:726px;margin-left:auto;margin-right:auto;margin-bottom:36px; > </google-read-aloud-player> <script async src="https://www.gstatic.com/readaloud/player/web/api/js/api.js"></script>  <div class="module--text module--text__article" data-analytics-module='{ "module_name": "Paragraph", "section_header": "AI can boost growth and make Europe more competitive" }'> <div class="uni-paragraph article-paragraph" data-component="uni-article-paragraph"> <div class="rich-text"><p data-block-key="ggmi3">There are few more pressing questions facing European governments than how to drive economic growth and make the region more competitive. And it’s clear that one of the most important ways to boost the EU's competitiveness is by harnessing AI for growth.</p><p data-block-key="fu0gv">A <a href="https://implementconsultinggroup.com/article/the-economic-opportunity-of-generative-ai-in-eu27">new report</a> by Implement Consulting Group, commissioned by Google, estimates that generative AI could add €1.2-1.4 trillion to the EU's GDP or 8% in ten years. The report also outlines how AI can significantly boost productivity across various sectors.</p><p data-block-key="a7jpf">This ability of generative AI to boost economic growth and competitiveness is particularly significant for Europe. According to <a href="https://commission.europa.eu/topics/strengthening-european-competitiveness/eu-competitiveness-looking-ahead_en">Mario Draghi's new report</a>, Europe’s competitiveness has nosedived over the past decades: the EU’s <a href="https://ecipe.org/blog/the-european-productivity-slowdown/#:~:text=The%20EU's%20share%20of%20global,decline%20is%20slowing%20productivity%20growth">share of global GDP</a> has shrunk from over a quarter in 1980 to just 17% today. US <a href="https://ecipe.org/publications/keeping-up-with-the-us-why-europes-productivity-is-falling-behind/">productivity has surpassed</a> the EU’s by 20% in 2022.</p><p data-block-key="bdd4d">But this report is about more than economic metrics — it’s about how AI can help people be more productive, fuel growth and support long term sustainable jobs of the future. 74% of workers in European countries see productivity-enhancing effects of generative AI, and 43% of workers in European countries expect AI to positively impact their job. Our new report estimates that the majority (61%) of jobs will be augmented by generative AI while around 7% face a long-term transition to automation. As with previous transitions, like the birth of commercial aviation or the worldwide web, new industries and careers will be made entirely possible by AI powered breakthroughs. This impact has the potential to be felt across society — from enhancing the quality and efficiency of public services to unlocking scientific breakthroughs and alleviating labor shortages by freeing up resources and boosting productivity.</p><p data-block-key="cqemp">Europe’s productivity gap is largely down to slower technological development, innovation and adoption. As Mario Draghi says, “with the world on the cusp of an AI revolution, Europe cannot afford to remain stuck in the ‘middle technologies and industries’ of the previous century”. To catch up, the EU must unlock its innovative potential.</p><h3 data-block-key="1dmpk">A new agenda for AI backed growth</h3><p data-block-key="66p5d">This is why today, in addition to our Economic report, we’re also releasing our <a href="https://publicpolicy.google/resources/eu_ai_opportunity_agenda_en.pdf">AI Opportunity Agenda</a>: a series of recommendations for governments to seize the full economic and societal potential of AI. The Agenda outlines the need to revisit Europe’s workforce strategy, as well as investment in AI infrastructure and research, adoption and accessibility.</p><ol><li data-block-key="2pdio"><b>Investing in research and development</b></li></ol><p data-block-key="2djff">For the EU to truly compete in AI, it needs to make research and development a shared priority, as well as making funding more accessible. Without the right incentives to develop and commercialise AI innovation, Europe is stifling its talent and its chances of launching more home-grown tech unicorns.</p><ol><li data-block-key="b5qs"><b>Building infrastructure to support innovation</b></li></ol><p data-block-key="65nc4">AI breakthroughs are only possible with the right high-performance computing technologies and data centres — and the renewable energy to support them. To enable AI innovation at scale, the EU will need to allocate more funding to financing such infrastructure — as well as incentivising and enabling the private sector to do the same.</p><ol><li data-block-key="9il2r"><b>Improving skills and training programmes</b></li></ol><p data-block-key="fe97u">Technological growth will not be effective if people are left behind. Given its diversity, the EU must make sure technology benefits every business, economy and person. To do this, it needs to accelerate digital skills transformation, putting AI skills and education at the centre of a revitalised European Skills Agenda — and adding it to school curriculums.</p><ol><li data-block-key="1g453"><b>Promoting widespread adoption</b></li></ol><p data-block-key="7s512">We ultimately need to ensure that AI is applied and deployed in a universally accessible and useful way. For the private sector, EU policymakers and AI developers must work together to develop outreach strategies to traditional industries and small businesses who have much to gain from AI adoption. For the public sector, member states must double down on existing initiatives to increase the public procurement of AI and developing bolder AI adoption targets.</p><h2 data-block-key="8s0q2">Taking action</h2><p data-block-key="c6jju">Developing good policy and responsible AI will need close coordination between governments, the private sector, academia and civil society. Through our <a href="https://blog.google/around-the-globe/google-europe/ai-opportunity-for-europe/">AI Opportunity Initiative</a> and other partnerships we’re committed to working with others to get this right. But, as Mario Draghi highlighted, change is also needed in the regulatory environment. Since 2019, the EU has introduced over 100 pieces of legislation that impact the digital economy and society. It’s not just the sheer number of regulations that’s the challenge - it’s the complexity. Moving from the regulatory-first approach can help to unlock the opportunity of AI.</p><p data-block-key="b7fl9">In many ways, Europe is well-positioned to seize this moment. 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