Europe must not fall behind in the development of artificial intelligence (AI), startups France Digitale and the European Startup Network have urged.
Verena Pausder, chairwoman of the Startup Association, said Europe must act swiftly in the face of intense competition from AI giants in the US and China.
“The global race for AI leadership is accelerating. Europe can rise to this challenge – with unity and determination,” she said in a statement.
“Our strength lies in our talent, our world-class research, and the potential of our integrated market. But to lead, we must mobilize capital, scale our startups and ensure fair competition.”
The European Union and key national governments had to ensure a framework that fosters innovation rather than hinders it, she said.
“A fragmented approach will weaken us; a united effort will make us a global force.”
Chief executive of France Digitale, Maya Noël said Europe has what it takes to be a leader in AI.
By working together, Europe could “harness the capital, customers, and infrastructure needed for our AI companies to thrive and be sustainable in the long term — both economically and environmentally,” she said.
“Let’s invest in our talents — researchers and entrepreneurs alike — to build the champions of today and tomorrow.”
The associations called for more capital from investors to boost growth, a pan-European programme to mobilize funds, and standard regulations in areas like corporate law, taxation and employment to facilitate AI firm expansion.
The associations also recommend increased use of AI in the public sector and by small and medium-sized enterprises.
Currently, only a few European players have gained recognition in the AI industry.
The leading European AI startup Mistral AI from France focuses on developing open-source language models.
Germany’s Aleph Alpha develops AI systems to automate processes in companies and public authorities, while Cologne-based translation specialist DeepL competes with Google Translate and ChatGPT’s translation functions.
The Munich software company Helsing specializes in AI for the defence industry, with products like a swarm-capable combat drone intended to assist Ukraine against the Russian offensive.
Despite these European successes, the gap with the US threatens to widen. In January, three top technology companies announced they would join forces and invest $500 billion to grow AI in the US.
The new partnership, Stargate, will be formed by OpenAI, Oracle and SoftBank.
Meanwhile, the Chinese startup DeepSeek recently challenged the dominance of US tech companies by presenting a powerful AI model created at a fraction of the cost.
