Executive Summary
Generative AI (GenAI) emerges as a transformative strategic lever for European industry, representing a profound opportunity to reinvigorate economic competitiveness, and drive innovation and productivity across multiple sectors. The technology promises a significant GDP boost, spanning critical business functions from product design to customer operations.
The path to realising this potential is complex and multifaceted. European companies confront various challenges, most notably a profound skills deficit, along with implementation barriers such as high development costs, lack of trust, and a fragmented regulatory landscape. Delivering on its potential requires a holistic approach that integrates technological capabilities, workforce development, and responsible innovation. The global race for AI leadership is accelerating and Europe cannot afford to stand still.
Key Strategic Challenges and Opportunities:
- Boosting Industry Players’ Adoption and Scaling of Generative AI: The integration of GenAI requires strategic identification of promising use cases across functions such as office productivity, software engineering, customer service, content creation, and product design. Organisations must overcome barriers related to developing clear business cases, measuring value, and managing high costs.
- Developing and Adapting Skills in Europe: Workforce transformation is critical to GenAI adoption. This involves addressing skills shortages, managing potential job displacement, and creating comprehensive training programmes. Companies need to develop change management strategies that help employees view GenAI as an opportunity for professional growth rather than a threat.
- Building Robust and Efficient Foundations: Successful GenAI implementation requires addressing fundamental challenges in data preparation, model training, and deployment. This includes ensuring data availability and quality, sufficient computing power, and developing cloud & connectivity infrastructure.
- Building Trusted and Responsible GenAI: Creating trustworthy AI systems necessitates a comprehensive approach to risk management, cybersecurity, and ethical considerations. To support industry in this journey and provide legal certainty, it is key to ensure the consistent and harmonised implementation of the AI Act and related legislation across the EU.
- Building Sustainable Generative AI: Environmental considerations are crucial in GenAI development. Organisations must balance technological potential with sustainability goals, understanding and mitigating the environmental impact of data centres and computing infrastructure while exploring how GenAI can support broader sustainability initiatives.
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