It is a pleasure to be back before this Committee as part of our regular dialogue. The topic for today’s hearing goes to the heart of Europe’s economic future. Artificial intelligence has the potential to transform how we produce, work and innovate. Firms are set to devote around 10% of total investment to AI in 2026, and AI-related borrowing already accounts for roughly a quarter of credit growth to firms. [ 1 ] AI could significantly enhance Europe’s productivity, competitiveness and living standards. But it will also affect – and to some extent is already affecting – investment, labour markets and inflation, and it therefore also matters for monetary policy. Europe has a real opportunity to harness this technology. But success is not automatic.
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