My aim today is to describe how AI is reshaping the euro area economy. [ 1 ] Although the development of frontier AI models is primarily taking place in the United States and China, the adoption of AI will be a key determinant of European productivity growth in the coming years, while expenditure on AI adoption also currently constitutes a significant stimulus to the euro area economy. [ 2 ] In addition, European firms are part of the global AI supply chain, while European investors are contributing to the funding of the global buildout of AI infrastructure through equity and debt markets and the banking system.
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