ECB’s Philip Lane says AI is reshaping the euro area economy, but Europe is still playing catch-up

Euro area firms are pouring money into artificial intelligence, yet the region trails the US and China on computing power and model development The European Central Bank has a new variable in its economic models, and it isn’t oil prices or wage deals. It’s artificial intelligence. Philip R. Lane, a member of the ECB’s Executive Board, has spent much of 2026 arguing that AI is already driving economic activity in the euro area. He also says it could lift productivity and growth over the long run, though that payoff hasn’t fully arrived yet.

Source: Crypto Briefing