Over 70 AI experts criticize European Commission forecasts based on tech executive statements, while financial institutions warn of eurozone economic risks linked to US tech market valuations and heavy investment exposure.
Critics point out that EU leadership’s predictions about the development of artificial intelligence are often based on statements by executives of large American companies such as Nvidia, OpenAI and Anthropic, who have a vested interest in overstating the industry’s potential. In fact, more than 70 leading scientists have argued that adopting such unfounded estimates undermines Europe’s credibility as a source of scientific knowledge at a time of increasing economic instability.
Europe is currently particularly vulnerable to a disruption in the US market for three main reasons:
- The size of the bubble: The market value of publicly traded companies in the US is equivalent to 230% of US GDP, significantly higher than the 150% recorded before the dot-com bust in 2000.
- European investors' exposure: In recent years, eurozone investment in US stocks has increased significantly. The European Central Bank estimates that European households have an exposure to US technology stocks of €440 billion, often without realising the risk of capital accumulation.
- Limited room for reaction: The European Central Bank has limited room to reduce interest rates due to inflation, while many Eurozone countries are under fiscal pressure, which makes it difficult to absorb economic shocks.
Despite repeated warnings from the European Stability Mechanism, the IMF and the ECB about “serious consequences” for employment and financing conditions, European summits remain focused on accelerating the adoption of artificial intelligence. Experts warn that a possible correction in US markets would not only hit the central financial system, but could also cause borrowing costs to rise for countries in the Mediterranean region, rekindling turmoil similar to those experienced in Europe in the past decade.
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