This article has been originally published on ai4business.it on March 18, 2026 (Italian only).
Artificial intelligence is redefining the global economy, yet Europe remains held back by complex regulations and a lack of strategic vision. Between the protection of rights and competitiveness, a gap is emerging that penalizes businesses and SMEs. A European AI model is needed—based on industrial expertise and high-quality data—to avoid technological dependence and the loss of sovereignty.
We are living through a phase of European industrial history in which artificial intelligence is not merely an emerging technology, but a true strategic directive. AI is redefining healthcare, manufacturing, energy, finance, logistics, and public administration. It is not an incidental innovation: it is a cognitive infrastructure that will determine productivity, competitiveness, and economic sovereignty in the coming decades. And yet, Europe still seems suspended in an unresolved choice: does it want to be a protagonist or a mere spectator of this transformation? The AI Act and the GDPR stem from a commendable intention: protecting citizens’ rights, ensuring transparency, and preventing abuse. These are praiseworthy attempts to build a solid, values-based regulatory framework. However, a widening gap is opening between the intent and the actual impact.
The reality from the perspective of European businesses
The daily reality for European companies tells a different story: regulations that are complex to interpret, potentially disproportionate sanctions, lengthy authorization processes, and fragmented, uncertain access to public funding. Meanwhile, extra-European competition continues to innovate and scale, often operating in markets with lighter constraints or with a financial capacity that allows them to easily absorb compliance costs. The result is an ecosystem that limits itself. SMEs—the true backbone of the European economy—struggle to adopt AI-based solutions. At the same time, international Big Tech firms are able to “budget” compliance costs, creating a dangerous competitive asymmetry that penalizes those innovating specifically within Europe.
A turning point is needed: the call for strategic clarity
Europe cannot delude itself into replicating the American model based on massive investments in hyperscale data centers and control of the hardware supply chain. We do not hold sovereignty over GPUs, semiconductors, and critical infrastructure, nor is it realistic to think we can bridge this gap in the short term. But this does not mean we are condemned to irrelevance. We can—and must—build a European model of artificial intelligence based on what sets us apart: vertical expertise, industrial know-how, the quality of sector-specific data, and the proximity between research and business. A model that emphasizes AI applied to real-world processes, rather than just general-purpose models, and one that introduces a form of “intelligent technological patriotism”: rewarding those who develop, adopt, and scale AI solutions in Europe. This means more accessible funding, consistent tender criteria, and public procurement that does not penalize European innovation with impossible or contradictory requirements. It also means accepting that not everything is strategic and that resources must be concentrated where the impact is real and measurable.
The imbalance between Europe and the US
The imbalance is now evident: while the United States invests billions in AI-native models and startups, and China integrates artificial intelligence into its geopolitical and industrial strategy, Europe remains a prisoner of an abstract vision, where risk mitigation outweighs the capacity to generate opportunity. Two examples help clarify the current paradox. Healthcare. The European Union imposes strict limits on the use of AI in the healthcare sector to protect citizen privacy. This is a sacrosanct goal. But in practice, millions of people continue to seek diagnoses, advice, and clinical interpretations on Google, social networks, or extra-European platforms not designed for this purpose. Is this truly the protection we want to offer? An imperfect but regulated, auditable AI developed in Europe would likely be safer than a web without filters, without accountability, and without control. Energy. Public debate often focuses on the energy consumption of data centers and AI models. But it is often forgotten that artificial intelligence is currently the most powerful tool for reducing industrial consumption, optimizing grids, predicting failures, improving energy efficiency, and accelerating the ecological transition. Blocking or slowing down AI adoption in the name of sustainability risks producing the opposite effect.
The time to adapt has run out
AI will be far more pervasive than the digitalization of the 2000s. Every production chain, every corporate function, and every public service will be affected. The time to adapt has run out. We do not need ten-year plans full of good intentions, but two-year operational strategies with clear objectives, defined priorities, and precise responsibilities. Political courage, industrial vision, and the ability to make choices are required. Regulation is necessary, but governing innovation also means choosing where and how to enable it. This is not just a technical issue, but a political and industrial responsibility. If Europe continues to protect its citizens only on paper, while leaving them dependent on technologies developed elsewhere, it will lose not only economic competitiveness but also cultural and political sovereignty.
