Europe's Path to Competitiveness in the Global AI Race

The findings reveal significant disparities between the EU and its two main competitors in the race for advanced AI models, particularly in terms of computing power and human resources. Europe should focus on software inputs to increase computational and algorithmic efficiency rather than entering a costly subsidy race focused on hardware inputs such as frontier chips and data centers.

Note: The cep paper "How to Strengthen the EU’s Position in the AI Industry: Focusing on Software and Research” is part of a broader, three-part study entitled “Europe’s Path to Competitiveness in the Global AI Race” and commissioned by the Friedrich Naumann Foundation for Freedom. The study explores the implications of AI developments, with a focus on the core hardware and software supply chains dominated by the US and China. It is available at this link: https://shop.freiheit.org/#!/Publikation/1826.