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Growing Investment Gap: The US is clearly lagging behind the EU when it comes to AI investments

Growing Investment Gap: The US is clearly lagging behind the EU when it comes to AI investments

The investment gap is widening
The United States is clearly lagging behind the European Union when it comes to AI investments

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The European Union is cautious when it comes to artificial intelligence – at least when it comes to investments. This emerges from an assessment conducted by the European Court of Auditors. The situation of the European Union is very bad, especially compared to China and the United States.

According to the European Court of Auditors, the European Union has not been able to keep up with leading global players when it comes to investing in artificial intelligence in recent years. “EU investments in artificial intelligence increased steadily between 2018 and 2020,” says a report by the Luxembourg authority. However, it is estimated that the AI ​​investment gap between the US and the EU, affecting both the public and private sectors, has doubled during this period. The Board of Auditors said: “The European Union is more than ten billion euros behind.” Government agencies and private companies in the USA have invested much more money.

Data from the Organization for Economic Co-operation and Development (OECD) also showed that the European Union continued to perform worse than the United States and China in terms of risk capital investments in artificial intelligence in 2021 and 2022, the Board of Auditors said. AI investments have reportedly increased the EU budget. A spokesperson for the European Commission confirmed that more than one billion euros are already invested in artificial intelligence research projects every year. However, considering the Union's total public and private investments in AI, EU funds represented only a small portion, according to the Court of Auditors.

Investment objectives have not changed since 2018

According to the Accounting Council, the lack of ambition in investment targets “runs counter to the goal of building a globally competitive AI ecosystem.” The EU investment targets have remained unchanged since 2018 and are therefore outdated. While the consortium was still aiming for public and private investments in artificial intelligence of up to 20 billion euros over the period from 2018 to 2020, according to the body, such a contribution was planned every year for the next ten years.

The Audit Bureau believes that it is important to invest money in artificial intelligence. “Major and targeted investments in artificial intelligence will have a decisive impact on economic growth in the European Union in the coming years,” stressed Mikhails Kozlov, member of the Court of Auditors responsible for auditing.

Depending on the Member State, the proportion of companies using AI varies greatly. “France and Germany have announced the largest public investments in artificial intelligence, while four countries still have no AI strategies,” the court said. It is important to agree with Member States how their investments will help achieve the EU's objectives.