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Europe’s leaders abandon the race for frontier AI – POLITICO

By staffOctober 14, 20262 Mins Read
Europe’s leaders abandon the race for frontier AI – POLITICO
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That followed a Sept. 4 seminar at which the Commission’s AI envoy, Siemens chair Jim Hagemann Snabe, told 27 commissioners that the EU should focus less on winning the race to build AI and more on how to use it to turn around the bloc’s productivity, two Commission officials said.

The scale of the challenge is clear: At the end of last year, only 1 in 5 European businesses used AI in their activities, with Denmark as the frontrunner (42%) and Romania at the bottom of the pack (5.2%), according to Eurostat.

The bloc’s poor showing is mainly because of small and medium-sized companies that make up the lion’s share of Europe’s economy. Last year, 55% of Europe’s large companies used AI, compared to only 17% among small companies — who, according to a recent OECD report — limit themselves to off-the-shelf AI tools for specific tasks.

People arrive to attend Mistral’s AI Now Summit in Paris on May 28, 2026. | Stephane de Sakutin/AFP via Getty Images

Companies that considered using AI but decided against it cited a lack of expertise as their top concern, even before regulatory concerns. American business leaders have also said that regulatory and political uncertainty is holding them back.

Over the next few weeks, the European Commission will make several efforts to boost adoption rates. On Nov. 16, it organizes an “Apply AI summit” to “accelerate AI implementation in strategic industries.” Von der Leyen name-checked health, transport, agrifood, advanced manufacturing, defense and space as areas with the “biggest potential.”

Some in Brussels are quick to push back on the idea that Europe has given up entirely on the underlying models. 

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