Google Warns EU Falling Behind China in AI Adoption Amid Regulatory Barriers

Google Warns EU Falling Behind China in AI Adoption Amid Regulatory Barriers

At a summit in Brussels this week, Google’s President of Global Affairs, Kent Walker, urged European leaders to accelerate artificial intelligence adoption, warning that the EU risks losing ground to global competitors—particularly China—if regulatory hurdles are not addressed.

Speaking at the Competitive Europe Summit, Walker described AI as an “invention of a method of invention,” capable of transforming industries, economies, and geopolitics. He cautioned that Europe’s prosperity and security depend on catching up with rivals who are already moving faster.

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According to Walker, the gap is stark: around 83% of Chinese companies are already using generative AI, compared with just 14% in the EU, based on European Commission figures. He argued that this imbalance stems partly from heavy regulation in Europe, where more than 100 new digital economy rules have been introduced since 2019.

“More than 60% of Europe’s businesses now say regulation is their biggest obstacle to investment in the EU,” Walker said, pointing to a Danish government study that estimated new rules could cost businesses and administrations an additional €124 billion annually.

A Three-Part Strategy for Europe

Walker proposed a three-step framework to help the EU regain momentum: smarter policy, broader adoption, and scaled innovation.

1. Smarter policy: He called for a simpler, innovation-friendly regulatory environment. Rather than imposing sweeping restrictions, Walker suggested focusing on real-world risks and regulating outputs instead of micromanaging the science itself. Harmonizing international standards, he said, would allow European citizens and businesses to benefit from the most advanced AI systems without unnecessary barriers.

2. Broader adoption: Walker stressed the importance of equipping citizens and businesses with AI skills, noting that Google’s newest models are 300 times more efficient than those from just two years ago. He highlighted Google’s role in training more than 14 million Europeans in digital skills and pointed to its €15 million AI Opportunity Fund, which helps vulnerable groups access training. Governments, he argued, should scale up successful pilot projects to ensure no one is left behind.

3. Scaling innovation: Moving beyond chatbots, Walker emphasized the breakthroughs AI is enabling in science and research. He cited Google DeepMind’s AlphaFold, now used by over three million researchers to study protein structures, and GNoME, which is discovering new materials with potential applications in energy, transport, and water sustainability.

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Balancing Regulation and Growth

Walker acknowledged that regulation plays an important role but cautioned against overreach. He urged EU leaders to “oversee outputs, not inputs,” designing rules that protect against harm while fostering innovation. He also underlined Google’s commitment to Europe, noting its 30,000 employees, seven data centers, and 13 cloud regions, as well as partnerships with European companies like Thales and Schwarz Group to ensure data sovereignty.

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The European Commission is currently gathering feedback to help shape its AI agenda, with a consultation period open until 14 October.

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