Event Summary: Competitiveness, Commerce, and the Cloud – How Can We Drive More Technology-based Change in Europe?

The event focused on the EU’s cloud and AI policy, addressing the challenges and opportunities for Europe to remain competitive in these sectors. The discussion highlighted issues such as technological sovereignty, digital regulations, innovation and investments to bolster the EU’s position in the global market.

Nanna-Louise Linde, Vice-President of European Government Affairs at Microsoft, and Fredrik Erixon, Founder and Director of ECIPE, welcomed the audience to the event before giving the floor to Thibaut Kleiner, Director of Policy Strategy and Outreach at DG Connect, European Commission, for a keynote speech

In his intervention, Mr Kleiner emphasised the EU’s current dependency on non-European cloud providers. “Seventy percent of the EU cloud market is served by US hyperscaler cloud providers, and the largest European providers have a very limited market share,” he said​. He also underscored the need for the EU to shift from merely purchasing technology to fostering local ecosystems and producing necessary technologies within Europe, as outlined in the Digital Compass for 2030. Mr Kleiner stressed that while achieving technological sovereignty might seem ambitious due to the significant investment gap, the EU must act now to avoid deepening dependencies and losing future competitiveness.

Following his discourse, Fredrik Erixon took over the stage once again to moderate a panel session alongside Eline Chivot, Policy Advisor at DG Connect, Svetlana Stoilova, Digital Economy Adviser at Business Europe, and Tjade Stroband, Director of European Government Affairs at Microsoft.

Ms Chivot echoed Mr Kleiner’s concerns about competitiveness. She noted that productivity growth in Europe has lagged behind the US, which grew by 6% compared to Europe’s 0.6% since 2019​. She also pointed out that despite various efforts, only 8% of European SMEs have adopted AI, highlighting a significant area for improvement​. She emphasised the importance of collaborative governance mechanisms, such as national strategic roadmaps, to monitor progress in digital skills, telecoms, and the adoption of technologies like cloud and AI.

On the other hand, Ms Stoilova pointed out that businesses often struggle with the cumulative effect of numerous regulations, which can hinder the adoption of new technologies. She advocated for a more efficient allocation of available resources and better-targeted interventions, emphasising the need to maximise the impact of existing funds. Ms Stoilova also highlighted the importance of thorough impact assessments to ensure that new regulations genuinely address market needs without creating unnecessary burdens​​.

Finally, Mr Stroband shared insights into how Microsoft has embraced AI and cloud technologies. He noted the importance of regulatory balance, advocating for policies that enable innovation while ensuring security and compliance. He also highlighted Microsoft’s European Data Boundary initiative as an example of mitigating risks while promoting technological adoption​​.

The panel concluded that the EU is at a critical juncture where swift action is needed to close the investment gap and enhance technological sovereignty. The development of regulatory frameworks like the AI Act and initiatives like the Digital Compass for 2030 are steps in the right direction, but effective implementation and fostering an innovation-friendly environment are crucial. The speakers collectively emphasised the importance of a coordinated approach involving both public and private sectors to achieve these goals.

Overall, the event underscored that while Europe faces significant challenges in the cloud and AI sectors, there is a clear path forward through strategic investments, robust regulatory frameworks, and fostering local innovation ecosystems. The EU’s ability to stay competitive will depend on its capacity to leverage these tools and adapt to the rapidly evolving technological landscape.

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Related document: The EU’s Trillion Dollar Gap in ICT and Cloud Computing Capacities: The Case for a New Approach to Cloud Policy