ECB President Christine Lagarde Highlights Growing AI Investment Gap Between Europe and US
European firms are increasing AI spending, but the US continues to dominate global computing capacity while European households hold significant investments in American tech giants.
European companies are increasing their investment in artificial intelligence, yet the gap between Europe and the United States continues to widen. European Central Bank President Christine Lagarde noted that while euro area firms are expected to direct roughly 10% of their total investment toward AI this year, the US maintains a significant lead in global computing capacity.
Current data shows the US controls approximately 75% of the world’s AI computing capacity, compared to about 5% in Europe. This disparity persists despite rising AI-related borrowing, which accounted for roughly 25% of the total increase in credit to euro area firms during the first quarter of 2026.
The adoption of AI tools among the European workforce has doubled over the past two years, with more than half of employees now utilizing such technology. However, the rate of digital investment in the US has grown twice as fast as in Europe during the same period.
A notable factor in this dynamic is the flow of capital from European households into American technology firms. European households collectively hold around €440 billion in US tech companies, effectively funding the industry that European policymakers are attempting to compete with.
The production of cutting-edge AI models further illustrates the divide. In 2025, the US produced 59 notable AI models, while China produced 35. In comparison, France and the United Kingdom each produced one.
Lagarde has identified the development of European computing infrastructure and the integration of the continent’s fragmented capital markets as key priorities. Estimates suggest that rapid AI adoption could potentially boost euro area productivity by up to 4% over the next decade.
