European Central Bank President Christine Lagarde said Europe cannot rely solely on buying AI technology from the United States and must develop its own components to avoid strategic vulnerability. She warned AI is “special”: beyond data-protection risks, issues around access, exit or contract changes would simultaneously affect all sectors, creating a form of leverage that could be used in trade negotiations, including tariffs or digital taxes. The comments reinforce ECB calls for Europe to acc

European Central Bank President Christine Lagarde said Europe cannot rely solely on buying AI technology from the United States and must develop its own components to avoid strategic vulnerability. She warned AI is “special”: beyond data-protection risks, issues around access, exit or contract changes would simultaneously affect all sectors, creating a form of leverage that could be used in trade negotiations, including tariffs or digital taxes. The comments reinforce ECB calls for Europe to accelerate domestic AI development to mitigate economic and sovereignty risk.