Speaking to attendees at the Techarena event in Stockholm, Sweden, on February 20, Prime Minister Ulf Kristersson said that Europe really needs to do more. “The US economy, the Chinese economy, have been growing much faster than the European economy for the last 20 years,” he said. “If this does not change, Europe will really become a kind of museum compared to other regions of the world.”

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Swedish Prime Minister Ulf Kristersson said that Europe should loosen regulations on artificial intelligence (AI). Photo: Swedish Government Office

Prime Minister Kristersson's comments echoed those of other European leaders at last week's Paris AI Action Conference, where they stressed the need for the region to become more competitive in the global AI race.

French President Emmanuel Macron announced a €109 billion ($113.7 billion) investment in AI, including pledges from foreign investors such as the UAE and US and Canadian investment funds, as well as domestic companies including Iliad, Orange and Thales. He compared the scale of the investment commitment to the $500 billion Stargate project announced by US President Donald Trump in January.

European Commission President Ursula von der Leyen also said that the EU will mobilize a total of 200 billion EUR (208.6 billion USD) to invest in AI.

Meanwhile, US Vice President JD Vance "pointed his spear" at Europe, saying that officials on the continent have focused too much on managing AI instead of pursuing its development potential. Affirming that the US is the "leader" in AI, he said the US wants Europe to be more lenient with AI than before.

“We need international regulatory mechanisms that promote the creation of AI rather than stifling it, and we need our European friends in particular to look at this new field with optimism rather than anxiety,” Vance said at the Paris summit.

Tech industry critics have criticised the EU for taking an overly restrictive approach to AI. The bloc’s AI Act, which came into force this year, is the first comprehensive set of rules to address the risks posed by the technology. “To compete in the new geopolitical landscape, Europe needs to be a place where business and innovation can thrive,” said Sweden’s prime minister. “That means less regulation. More access to capital and talent.”

He pointed out that businesses are struggling to adopt the latest technology due to uncertainty about EU regulations, and that companies established in Europe are moving to the US due to lack of access to capital.

(According to CNBC)