The EU Will Lag on AI for the Same Reason it Lost on Phones and EVs

Eurointelligence comments Europe is Losing the AI Battle.

Having missed the first stage of the digital revolution, Europe is now in danger of missing the next big phase: that of artificial intelligence, a technology that is now experiencing explosive growth. The US is leading, followed by China, and this is pretty much it.

The German government has commissioned a study on large European AI models, which argues that unless the EU can develop its own technology, it will become dependent on the US, which would also mean dependence on a lower standard of data protection. The problem is that Europeans see artificial intelligence as a threat against which they want to protect themselves. It is hardly surprising that they are not the lead developers.

We recall when some large German companies deluded themselves in the 1990s that they could out-compete digital technologies through sophisticated analogue technology. Remember Francois Mitterrand’s and Helmut Kohl’s high-definition television? The EU is committing the same mistake on AI.

The problem is computing power. Microsoft is about to invest $10bn into OpenAI, a open-source AI lab. The German government has a budget of €3bn to invest into a whole series of small projects. The problem is that the technology is moving at a faster speed than the debating schedule in the Bundestag.

And we don’t see political leaders turning this into a high-priority matter. At least Kohl and Mitterrand were interested in technology. They just bet on the wrong one.

The politics has not changed either. In Germany, the CDU is in favour of de-regulation, but the Greens, who run the economics ministry, want to prioritise data protection. This is why we are where we are. 

EU vs US Explained

Microsoft alone will spend over three times what Germany as a country will spend. Factor in Google, Amazon, and the US defense industry. 

The EU likes to protect existing businesses. Germany cheated to protect legacy diesel engines for years.

On mundane matters like agriculture, France protects the small farm. 

The EU now has lawsuits against Google, Amazon, and Microsoft. The US leads because the EU would bust up any company before it got big enough to lead on anything. 

It’s the same story on artificial intelligence where Greens are hell bent on protecting rather than investing. 

And heaven forbid any European company get big enough to achieve anything. The EU would bust them all up in the name of competition. 

EV Production

The EU had a lead in EVs. China now does.

On January 27, 2023 I noted In Two Years, China More Than Doubles the US on Car Exports, Catches Germany

Even when the EU has a lead it cannot manage to keep it for long.

This post originated on MishTalk.Com.

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alexwest
alexwest
1 year ago
= EU lags on electric vehicles

Ford Motor Co has yet to announce mass layoffs like the ones that
have plagued the tech industry in recent months. The latest sign the
Detroit automaker might reduce headcount in the near term is from the
CEO himself, according to Bloomberg.

“It takes us
25% more engineers to do the same work statements as our competitors,”
CEO Jim Farley said on SiriusXM radio’s “Cars & Culture with Jason
Stein,” which will air on Feb. 10.

Farley continued: “I can’t afford to be 25% less efficient.”

I WONDER who our competitors are ??? I guess it is not GM , or ever in chapter 13 reconstruction Chrysler
alexwest
alexwest
1 year ago
= EU lags on electric vehicles
it will end same way as for normal cars.
nobody in right mind would buy USA car outside USA , and most of them are trucks anyway cause USA makers dont do good passenger oriented cars anymore.
USA lost to japan, Europe and S. Korea. and next competitors are china and india.
alexwest
alexwest
1 year ago
=EU lags on artificial intelligence, electric vehicles, cloud storage, phone technology
in wiki, exist page ‘List of cities by homicide rate’
it is mostly south/central america, and s afrika, and some CITIES from USA. (detroit, baltimore, etc)
——–
funny not a single city form EU, or bad Russia, or whole Asia!
i guess AI was not that good in USA to prevent crimes and-or help poor people!
alexwest
alexwest
1 year ago
=artificial intelligence,
AI is just a tool.
will AI help to bring costs for medicine=drugs in USA, for example ? USA spends 2x per capita more than 1rate industrial countries in world (france, germany , japan)
USA is just middle of pack in term life expectancy, child mortality, etc.
almost 40% of population in USA is simply obese!
———–
will AI help to mediate racial/political tensions in USA? i really doubt it !
will USA catch up w/ finland , norway , austria or japan in term of social cohesion ? i really doubt that.
——-
just check any rating about ‘quality of life’. most top countries are from Europe.
Jonnyboy
Jonnyboy
1 year ago
Reply to  alexwest
You nailed it. it’s just a tool. and it’s how the tool is used that matters…
lamlawindy
lamlawindy
1 year ago
Reply to  alexwest
will USA catch up w/ finland , norway , austria or japan in term of social cohesion ? i really doubt that.
Of course not, but you’re comparing apples and oranges. Those nation-states that you name began as conglomerations of peoples with common ethno-cultural backgrounds. The US, as a multi-ethnic state isn’t the same. By definition, it’s more unstable BUT — also by definition — it’s more accepting of novel things, including technologies because the ethno-cultural ties (compared to other nation-states in Europe) are weaker or non-existent. It’s our blessing and our curse.
alexwest
alexwest
1 year ago
=phone technology,
outside Apple, there is no any significant phone maker in USA=world.
Android (byproduct of google) is loosely created OS free to be modified by one! Huawei is doing just fine!
AND ALL HARDWARE IS DONE IN ASIA! s. korea, china, taiwan, japan!
alexwest
alexwest
1 year ago
=phone technology,
last time i checked ARM is in England , not Silicon valley
ps
Arm is a British semiconductor and software design company based in Cambridge, England.[7]
alexwest
alexwest
1 year ago
=electric vehicles,
EU is light years ahead in term of electric vehicles! it is called public transportation. thing that does not exist in USA!
Felix_Mish
Felix_Mish
1 year ago
And then there is DeepMind, headquartered in London. And owned by Google.
And both are not well defined by where they are incorporated.
What matters most is where their employees live and what language they speak.
HippyDippy
HippyDippy
1 year ago
Once again, government is the problem. Or rather, the slaves who demand the illusion of security that government never provides are the problem. The only way in which government can”save the day” is when they decrease their involvement. Think back to lowering state taxes. If the slaves in the EU weren’t so afraid of change, they could lead in AI; but they are. So now, all the data from the AI will be harvested by other entities. As is being done now. Just so stupid.
Jojo
Jojo
1 year ago
Reply to  HippyDippy
And despite the continued rantings about overreaching government, nothing will ever change. In fact, if anything, government will continue to grow and overreach like the blob.
Jojo
Jojo
1 year ago
Here’s another AI search engine available right now:
=====
AI. Chat. Search.
Search for the next generation with an AI chat assistant
Andi is search for the next generation using generative AI. Instead of just links, Andi gives you answers – like chatting with a smart friend.
Andi is a conversational search engine. It uses a simple chatbot interface with an AI-powered assisant to answer questions simply, find you the best information, and help you stay safe and productive online. It’s private and ad-free, anonymous, and free for anyone to use.
Call_Me
Call_Me
1 year ago
Reply to  Jojo
Get the sentiment of Gen Zers not using the goog to search, but the idea of it being big brother while using tick-tock and having countless apps on their smart phone comes across as a bit delusional.
Interesting product. Wonder if they will stay the course or end up getting bought out by an offer ‘too good to pass up’. Here is a write-up from last autumn-
Call_Me_Al
Jojo
Jojo
1 year ago
Reply to  Call_Me
If someone is able to self-fund a product and doesn’t need an income from the product, then they can continue as a free model. But that isn’t reality. So most likely, as the article you point to noted, try to sell add-on services of some kind that someone might be willing to pay for or sell to someone else. Take advantage of the free access while it exists.
Jojo
Jojo
1 year ago
Some potential AI futures in the financial world here:
========
From financial planning to dealmaking, here’s how ChatGPT could impact jobs across Wall Street
Feb 3, 2023, 9:04 AM
– ChatGPT could play a key role in several areas of finance.
– ChatGPT will have real-world applications in financial services.
– Experts say it will be used to enhance productivity and elevate existing tools.
Here’s how the chatbot could impact six different areas of Wall Street.
Experts have predicted ChatGPT’s impact on a variety of industries, and it appears Wall Street will be no exception.
OpenAI’s ChatGPT has been the subject of public fascination recently. Microsoft poured $10 billion into the startup during its most recent round at the end of January, which reportedly valued the startup at $29 billion.
ChatGPT is a chatbot that generates conversational written responses to a user’s questions and prompts by using generative artificial intelligence that recognizes and mimics human speech patterns while dispatching encyclopedic knowledge. From churning out grammatically-correct but substance-lacking school essays to giving sound advice on how to negotiate a raise, playing with the chatbot is a fun pastime, but people have begun to wonder the impact it could have on across a multitude of industries.
It’s still early days — ChatGPT was released to the public in late November — but experts already expect ChatGPT and its underlying tech to be utilized as a productivity-enhancing tool in finance.
Maximus_Minimus
Maximus_Minimus
1 year ago
The problem stems from the fact that as soon as a Euro startup manages to attract market share, it is immediately gobbled up by some Silicon Valley behemoth protecting it’s turf.
China on the other hand, protects her competitors to US behemoths.
If you don’t have major information technology corporations, you don’t have investments and know how.
The US is also delusional thinking it can outsource manufacturing, and still have manufacturing inovation.
Politicians are not selected for their mental abilities, and their academic advisors are not much beter.
That said, I went shopping today, and didn’t run into an IA all day, just agricultural and manufactured products.
One day, I will appriciate my car having road assistance technology, but can live without it for now.
Some day, AI will be able to guess what I am thinking, and slap a penance on me for my thoughts, but hopefully not soon.
Jonnyboy
Jonnyboy
1 year ago
Did you use your car’s navigation system? The prices on the shelf, likely set by an algo if the store is at all capable. If you used spell check on your posting, that’s AI. All these uses of “AI” along with 100’s of others that no one thinks about anymore bc the goal posts move on what is futurestic AI is and what a “feature” is. So yes, you use AI. Every day.
PapaDave
PapaDave
1 year ago
If you are American, you have to like how the EU is managed. They become less and less competitive, letting the US continue to dominate in many areas.
Also, the US is likely to lead in hydrogen and renewables going forward, thanks to Biden’s Inflation Reduction Act. I expect some US companies to end up dominating the area.
In addition, the US will be expanding LNG export capabilities substantially in 2024/5, and the EU will become more dependent on these exports.
Same goes for most things space related.
The US is going to benefit from the way Europe is managed.
Felix_Mish
Felix_Mish
1 year ago
Reply to  PapaDave
“The US is going to benefit from the way Europe is managed.”
Compared to what?
Would the US be in better shape if Europe did not do things in a more American way? I’d guess yes. But, that’s a guess.
Now, if the measure is simply how much better the US does than Europe, then a blah US is far, far better off than an impoverished Europe. But is that situation what the US should shoot for?!?
klausmkl
klausmkl
1 year ago
Reply to  Felix_Mish
The USA will dominate on Fantasy Island. They can do anything there.
PapaDave
PapaDave
1 year ago
Reply to  Felix_Mish

The world is full of opportunities, for the individual, for companies, and for countries. The question is : who will take advantage of the opportunities? When you deliberately ignore the opportunities, someone else will take advantage.

For example: when digital cameras were first invented, companies like Kodak and Polaroid felt that they would never replace film cameras, so they refused to get involved with them, until it was too late. They let others take advantage.
Six000mileyear
Six000mileyear
1 year ago
EU government leaders are not experienced to make technical decisions and lead AI efforts. If they had the skills, they would have moved to the US to develop those technologies and profit instead of hiding in government.
8dots
8dots
1 year ago
Europe : let the boys of Meta AI & EV cannibalize themselves, before we move in, without spending much. We will get the final
products at half price.

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