The leading hubs of innovation for artificial intelligence are currently outside Europe and UK. However, the groundwork to change this status quo has already been laid, and promising approaches are starting to emerge.
By Benedikt Bonnmann, member of the Executive Board of adesso SE with responsibility for the data and AI business, and Libero Raspa, Managing Director at adesso UK
Artificial intelligence (AI) is widely recognised to be a key technology for the next stage in the evolution of the global economy and society. One specific trend is becoming increasingly apparent: in order to reach its full potential, AI needs to be tangible and accepted by large segments of the population.
That narrative applies in particular to the field of generative AI, commonly known as GenAI, which has seen impressive growth momentum in recent years. The ability to generate content such as text, images, videos or code makes this form of AI a powerful tool that can be used directly in manufacturing, customer service, software development, marketing and many other areas.
The main flow of investment in this impressive technology is centred on the USA since 2019. China and the entire EU follow far behind with just one thirtieth of the investment volume each, according to Stanford University's AI Index 2024. While the global AI market is expected to grow to USD 1.8 trillion by 2030 according to forecasts by Statista and Grand View Research, USA and China are currently investing significantly more in the AI sector than Germany or UK, for example. This gives them a clear advantage in the development of market-ready AI solutions.
The speed at which AI innovation is advancing and the scale of investment in the sector are proving increasingly challenging for regulators. While the United States and China offer a relatively lenient regulatory framework, Europe tends to have comparatively tough regulatory guard rails, as the EU AI Act illustrates.
The challenge for Europe is to develop its own AI strategy and stake out its own place in the AI world. Focusing on AI solutions and language models that are specialised, relevant and strongly contextualised seems to be the most promising approach. Such solutions can gain the trust of users, which is essential for the acceptance and integration of AI into social and economic life.
Europe already has suitable tools at its disposal. One of them is the Horizon Europe programme, which includes plans to invest around EUR 95.5 billion in research and innovation between 2021 and 2027. Some EUR 290 million of that amount will be made available in 2024 to promote research focusing on data, robotics, artificial intelligence and the development of cloud edge servers.
The UK government has proactively invested in artificial intelligence, recently pledging over £100 million toward a national AI research strategy, which includes funding for foundational model research via the Foundation Model Taskforce. In addition, the UK’s AI regulation approach prioritises a pro-innovation stance. This complements the EU's comprehensive AI Act, and the UK government emphasises that a framework that balances safety with fostering innovation could allow businesses to thrive globally.
The UK regained its full association status with Horizon Europe in December 2023, despite leaving the EU as a result of Brexit. This agreement allows UK researchers and organisations to participate in the Horizon Europe program, giving them access to funding and collaboration opportunities similar to other EU member states.
The fundamental European ideals of community and cooperation harbour opportunities, making it possible to achieve synergy effects by developing shared resources. Through targeted and joint investments and combined expertise, continental Europe can join forces, set standards and achieve its vision of responsible and human-centric AI models and applications.
Europe is currently at a crossroads. But with targeted investment – and a strong commitment to ethical standards and practical applicability by governments, language model providers and AI service providers – AI made in Europe can become synonymous with quality, trust and innovation.