Issue link: https://maltatoday.uberflip.com/i/1529221
10 OPINION maltatoday | WEDNESDAY • 13 NOVEMBER 2024 Europe struggles to coordinate its AI efforts across its member states WHILE the world watches the rapid evolution of artifi- cial intelligence (AI), Europe is playing catch-up. But is the continent indeed losing the so- called "AI war"? The simple answer is that it's that complicated. The EU, often celebrated for its regulatory foresight, is lag- ging in some critical areas of AI development compared to the United States and China. Europe's emphasis on ethi- cal AI governance, as demon- strated by initiatives such as the AI Act and sustainability, as reflected in its efforts to promote green AI, may give it a distinct advantage. Howev- er, this may not be sufficient in the current global compe- tition. Europe's AI struggle can be summarised in a few core challenges: talent retention, innovation funding, and frag- mented governance. The United States and Chi- na have consistently outpaced the EU in terms of private in- vestment in AI. Between 2016 and 2018, US AI start-ups received more funding annu- ally than all European start- ups combined, and China has made massive investments to become a global leader. The US boasts world-re- nowned AI research insti- tutions and tech giants like Google and OpenAI, while China benefits from vast state-backed initiatives and an unmatched wealth of data. While sizable, Europe's AI talent pool is being drained as researchers and developers migrate to countries offering better funding and more op- portunities. This isn't to say that Europe isn't trying. The EU's land- mark AI Act, which aims to shape global AI standards by emphasising human rights and responsible innovation, is a significant step in this direc- tion. In a world increasingly alarmed by AI's potential for misuse—whether for spread- ing disinformation or auto- mating military systems—the EU is positioning itself as a moral authority. Yet, as critics point out, noble intentions may not be enough to keep Europe com- petitive. The slow pace of regulatory processes and the fragmented approach to AI policy across member states risks leaving the EU further behind. The situation is ironic. Eu- rope was once ahead in the global race to regulate AI, thanks to its bold GDPR data privacy laws, which influenced international standards. How- ever, the need to balance in- novation with regulation has left the continent trailing the US and China, which have fewer regulatory constraints and more aggressive invest- ment in AI technologies. This need for Europe to find the right balance between innovation and regulation should be a key focus, as it is crucial for its competitive- ness. China, in particular, focuses on using AI to leapfrog the US in critical areas like surveil- lance, autonomous vehicles, and fintech. Meanwhile, the US attracts top global talent and remains home to the most significant AI companies. The EU is aware of these challenges. The "AI Innova- tion Package" initiative aims to create AI-dedicated su- percomputers and data hubs to nurture start-ups and re- searchers. But these efforts are only the beginning of a massive effort to close the gap. Unlike the US and China, which have devel- oped comprehensive AI strat- egies aligned with national priorities, Europe struggles to coordinate its AI efforts across its member states. This fragmentation prevents the continent from achieving the scale necessary to compete ef- fectively. Whether Europe is losing the AI war may miss a more important point. AI is not just a race to the top in terms of innovation — it's also about who sets the rules of the game. In this sense, Europe may not need to 'win' the AI war in the traditional sense but could instead reshape the bat- tlefield entirely. The EU's emphasis on trust- worthy AI—aligned with dem- ocratic values—might even- tually become the standard, particularly as concerns about AI's misuse grow globally. This potential for Europe to shape global AI standards should instill a sense of hope and optimism. However, the clock is tick- ing. Without significant in- vestment, better retention of AI talent, and more agile governance structures, Eu- rope risks being a regulatory superpower in an innovation wasteland. Meanwhile, the US and Chi- na are racing ahead with re- lentless momentum, leaving little room for hesitation. If Europe is serious about stay- ing competitive, it must do more. Its success hinges on navi- gating the precarious balance between rapid AI innovation and its deep-rooted ethical principles. The question isn't mere- ly whether Europe can keep pace—it is whether it can Is Europe losing the AI arms race? Prof. Alexiei Dingli is Professor of Artificial Intelligence Alexiei Dingli