AI: A Test for European Industrial Policy and an Opportunity Not to Be Missed
Originaly publied in French here https://www.latribune.fr/opinions/l-ia-un-test-pour-la-politique-industrielle-europeenne-1018022.html
In 2018, the Villani report highlighted the crucial role of artificial intelligence (AI) in France’s economic and technological future. Since then, the situation has hardly changed: AI is celebrated at summits and conferences, but European industrial policy still falls short of the challenge. Yet, this is not just about AI. AI is merely the most visible symptom of a much deeper issue: Europe’s recklessness towards risks and ignorance of digital stakes. We have allowed the United States and China to dictate the technological rules of the game while we hesitated.
Europe Is Falling Behind the U.S. and China
The Draghi report, published in September 2024, highlights an alarming reality: Europe is in decline. The productivity gap with the U.S. has widened from 15% in 2002 to 30% in 2023. This is no longer just a delay; it is a programmed descent into technological insignificance.
While we hesitate and debate, the dominance of U.S. AI continues to grow, driven by projects like Stargate and advances from OpenAI, Google, and the other tech giants. Meanwhile, China, through DeepSeek, demonstrates its ability to propose competitive alternatives with asymmetric budgets. These advancements are not neutral; they impose state-driven narratives and cultural biases unique to the nations developing them. Europe can no longer afford to remain a passive spectator in this dynamic.
Initiatives like Mistral AI prove that Europe can still play a leading role. Mistral could have remained a 100% French and European company, but due to inadequate support, it had to turn to American investors. This is not a fatality—it is a wake-up call. We have the responsibility to retain our talents, our technologies, and our sovereignty within Europe.
Building Our Own Champions: The Time for a European Small Business Act
It is urgent that we realize we hold the keys to our future. A simple and effective solution exists: a European Small Business Act. This would require major corporations and public administrations to allocate a significant portion of their contracts to European tech SMEs. It is the only solution to help companies grow. The goal is not just to preserve jobs but to create new ones and structure a sustainable economic ecosystem.
We need companies led by technological leaders, engineers who deeply understand the industry’s challenges. The success of Mistral AI proves that engineers must lead our companies, just as they do in all the major U.S. tech firms or Chinese enterprises like DeepSeek. This must change, and it is easy to implement through the BPI's fund-of-funds strategy. It is time to stop funding only managers and start financing those who know how to build.
Moreover, this technological revolution must not be limited to the tech sector alone. We must extend its benefits throughout the entire economic fabric, integrating AI and digital infrastructures into traditional industries, agriculture, logistics, and all productive sectors. AI and digital technologies must be used to enhance the efficiency of all our businesses, not just tech firms. The goal is not just to create a few prominent champions, but to modernize the entire French and European economic foundation.
A Historic Opportunity: Investing Massively and Immediately
Europe is at a crossroads. The opportunity to reclaim our position still exists, but we have reached a point of no return. If we do not wake up now, we will permanently lose our place in the global digital economy.
The Law of Accelerating Returns, theorized by Ray Kurzweil, explains that technological advancements accelerate exponentially as new building blocks are developed. This means that even if we have fallen behind, we can still rebuild a digital ecosystem by leveraging recent advances, provided we invest strategically.
Thus, we must implement an ambitious plan based on:
- Massive investment in strategic technologies (cloud, AI, digital infrastructures).
- Aligning industrial, trade, and competition policies to support our companies.
- Active support for technical talent and the promotion of our engineers.
We must also fight against defeatist narratives. When the director of BPI declares that France will never be able to compete with U.S. tech giants, he fosters a culture of economic dependence and state-sanctioned defeatism. This is a strategic mistake. Europe has everything it needs to succeed, and we must deconstruct these arguments that paralyze us into inaction.
This must be accompanied by the creation of a sovereign Ministry of Digital Affairs. This ministry, which could be structured under the newly appointed High Commission for Strategic Planning, must become a pillar of our industrial policy, alongside the structural efforts of BPI. This is a necessity, not a luxury.
The Time for Action
Digital technology is not just another sector; it is the infrastructure of the 21st century. It is time to stop seeing digital technology as a virtual world for geeks. We are engaged in an industrial and economic battle. Either we wake up, or we disappear.
We have the talent, the resources, and the capacity for innovation. All that is missing is strong political will to build a sovereign and high-performing digital ecosystem. Europe can still choose technological strength. But this choice will only be effective if we radically transform our industrial and political approach. It is time for a real wake-up moment.