Trusty AI: Europe's trump card and the chance of taking on a leading role in artificial intelligence

The fourth industrial revolution and the dominance of the AI

At the center of this revolution is artificial intelligence (AI), a technology that has the potential to change every aspect of our life - from the way we work and communicate, to the medical treatments we receive, and the weapons that defend our nations.

AI is no longer just a futuristic concept of science fiction films. It is a reality that already shapes our world today and whose influence will increase exponentially in the coming years. The ability to develop, implement and master AI technologies will be of crucial importance for economic competitiveness, social development and national security.

This race for AI initiative has triggered intensive global competition in which three main actors face each other: China, the United States and Europe. Each of these regions pursues its own approach, which is characterized by its respective strengths, weaknesses and strategic priorities. In order to understand the dynamics of this competition and to recognize the potential effects on our future, a comprehensive analysis of the investments, strategies and ecosystems of the individual regions is essential.

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Investments in AI: a show of strength of the super powers

The amount of investments in research and development (F&E) in the area of ​​AI is a crucial indicator of the commitment and ambitions of a nation. These investments are driving innovations, promoting the development of new technologies and attracting talents that further strengthen the AI ​​ecosystem.

China: The aspiring AI giant

China has developed into a serious competitor in the global AI race in recent years. The Chinese government has declared AI development into a national priority and directed considerable resources into the sector. Although government investments in AI decreased slightly to $ 1.8 billion in 2024 (compared to $ 2.1 billion in 2023), this does not indicate a declining interest. Rather, it could be a strategic shift in which the government promotes private initiatives and focuses on specific, strategically important areas.

The total financing of the Chinese AI industry was impressive $ 521 billion until December 2023. It is noteworthy that the entire financing volume has increased by 51 %, although the number of investment and financing events has decreased by 18.2 % compared to the previous year. This indicates a consolidation of the market, in which investors are increasingly prefering larger, more mature AI companies with proven potential.

China plans to issue $ 55 billion in the area of ​​science and technology in 2025, which corresponds to an increase of 10 % compared to the previous year. AI is expected to be a main professional. This significant increase in F&E expenditure underlines the long-term commitment of the Chinese government to achieve technological independence and to promote AI as a strategic priority.

The total F&E expenditure in China exceeded $ 496 billion in 2024, which corresponds to an increase of 8.3 % compared to the previous year. Particularly noteworthy is the increase in investments in basic research by 10.5 %. This indicates growing knowledge that long-term AI innovations have to be based on solid scientific foundations.

Another important aspect of Chinese AI financing is the role of state venture capital funds. In the past ten years, these funds have invested $ 912 billion in strategic industries such as AI, with 23 % flowing to AI-related companies. These state-supported investments play a crucial role in the design of the Chinese AI ecosystem and often serve as a signal for private investors.

In addition, China set up a national AI industry investment fund of $ 8.21 billion in early 2025 to accelerate AI innovations. This fund underlines the targeted approach of the government to promote the AI ​​sector, especially in important innovation areas.

After all, China in early 2025 launched a state-supported venture fund of $ 138 billion for emerging technologies, including AI. This massive fund signals long -term commitment to achieve independence in critical technologies, with the AI ​​forming a central column.

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USA: The Silicon Valley and the power of the private sector

The United States has long been a leader in AI research and development. In contrast to the state-controlled approach of China, the US AI ecosystem focuses heavily on innovations of the private sector, especially in Silicon Valley.

In 2024, AI companies received 42 % of US venture capital investments, compared to 36 % in 2023 and 22 % in 2022. This dramatic increase underlines the overwhelming confidence of investors and focus on the AI ​​sector in the USA, with venture capital increasingly priorizing AI projects.

The global venture financing for AI companies exceeded $ 100 billion in 2024, an increase of over 80 % compared to $ 55.6 billion in 2023, with almost 33 % of all global venture financing flowed into AI. This confirms the global trend of massive investments in AI, the USA being an important recipient and driver of this growth.

The US venture financing rose to a total of $ 178 billion in 2024, with $ 90 billion being invested in Silicon Valley, which is largely due to AI investments. This geographical concentration of the AI ​​investments underlines the persistent dominance of Silicon Valley as a global node for AI innovation and financing.

Investments in AI-driven deals in VC-financed companies have quintupled since the fourth quarter of 2023 and accounted for 60 % of all fundraising activities in the fourth quarter of 2024. This indicates an accelerating trend in which the AI ​​becomes the dominant focus for venture capital investments in the USA.

Although the private sector plays a dominant role, the US government also invests significant sums in AI research and development. In 2022, the US government spent $ 3.28 billion for AI investments. The entire US federal budget for IT in 2025 is expected to be $ 75.13 billion, with a strong focus on cyber security and AI.

The entire annual federal expenditure for research and development in the ACI area is less than $ 4 billion. NITRD (Networking and Information Technology Research and Development Program) reports that the entire AI funds for the 2025 financial year are expected to be $ 3.316 billion, consisting of $ 1.954 billion in “kernel” ACHI and $ 1.361 billion in support funds.

The significant increase in the Ministry of Defense in recent years is also remarkable. From August 2022 to August 2023, AI-related federal orders rose by almost $ 355 million to $ 4.6 billion from $ 355 million. This underlines the crucial role of the AI ​​in the US defense strategy.

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Europe: Ethical AI and the way to competitiveness

Europe follows a different approach than China and the USA. Instead of relying on massive government investments or the unregulated innovation of the private sector, Europe focuses on the development of an ethical and trustworthy AI.

The EU program “Digitales Europe” will provide a total of 2.1 billion euros for AI in the period 2021-2027. The Commission will provide 1.3 billion euros for the provision of critical technologies, including AI, for the period 2025 to 2027 to 2027.

The EU has launched the Investai initiative, a strategy of 200 billion euros in order to close the financing and development gap to the USA and China, with 50 billion euros from the EU and 150 billion euros from private investors.

France is a leading AI center in Europe. In 2024, 751 AI-focused startups were identified, an increase of 27 % within a year, and these startups received 1.9 billion euros in financing in 2024.

Germany's AI strategy has a budget of around 3.3 billion US dollars for the period until 2025. The German Federal Ministry of Education and Research (BMBF) will invest more than 1.6 billion euros in the current legislative period up to the next federal elections.

Government strategies and initiatives: The course for the future

The government strategies and initiatives play a crucial role in the design of a nation's AI ecosystem. They define the priorities, promote cooperation and create the legal framework for the development and use of AI technologies.

China: The centralized approach

The Chinese government has declared AI development into a national priority and provided considerable sums of money, political incentives and opportunities for public-private partnerships. This centralized, state-controlled approach is a formative feature of the Chinese AI strategy and ensures coordinated national effort.

The Chinese State Council published the development plan for artificial intelligence in 2017, which outlines the goal of building a AI-supported economy worth 1 trillion yuan by 2030 and making AI the “main drive” of industrial change.

The government pursues a multi-track strategy that includes the increase in public investments, promoting local governments to recruit AI talents and companies as well as the control of the development of private sector by public-private partnerships and government orders.

The Bank of China presented its action plan for the development of the AI ​​industry and promised $ 137 billion (1 Billion Yuan) over five years to strengthen the AI ​​supply chain and achieve “self-employment in science and technology”.

China's law on generative AI offers guardrails and best practice for industry participants. China intends to integrate robotics with AI, position humanoid robots as top technology and approved a state-supported venture capital funds of $ 138 billion, which focuses on robotics, AI and other top technologies.

Initiatives such as the digital silk road (DSR) aim to export China's AI technologies and governance models and thus redesign AI standards and practices in developing countries.

The government has set up a national arithmetic network to enable Chinese AI companies to invest less in their own computing power. The guideline “Acceleration of the scenario innovation to promote high-quality applications from AI for high-quality economic development” (2022) emphasizes the integration of AI technologies in all sectors for sustainable economic growth.

USA: Innovation and regulation in balance

The United States is pursuing a less centralized approach than China. The US government promotes innovations through investments in research and development, the support of public-private partnerships and the creation of a favorable regulatory environment. At the same time, awareness of the need to reduce the potential risks of the AI ​​and to ensure ethical principles.

The United States has a national strategic plan for AI research and development, which was updated in 2023 and tears off the Federal Government's roadmap for AI research and development. The United States also has the National AI Initiative Act. This law formals the national AI strategy and creates structures such as the National Artificial Initiative Office (Naiio).

Biden-Harris administration develops a national strategy for artificial intelligence (AI) to use the advantages of AI and reduce the risks. The National Security Memorandum (NSM) to the KI from 2024 aims to promote the US leadership role in the AI, to use AI for national security goals and to promote the security and trustworthiness of AI.

The US government intends to simplify the licensing procedures for chip orders in order to strengthen the leadership role of the United States in the area of ​​AI and to clarify allies. The Committee on Housekeeping (Cha) published a final report on the AI ​​strategy and implementation in 118th congress with the aim of ensuring that the offices of the House of Representatives and the authorities of the legislative can effectively manage their own AI systems.

The OSTP (Office of Science and Technology Policy) called for public comments in 2023 to update the national priorities and future measures of the United States in the field of AI, whereby areas such as rights, security, equality, economic growth and innovation were covered in the public service.

Europe: Ethical AI as a competitive advantage

The EU approach to AI focuses on excellence and trust, with the aim of strengthening research and industrial capacities and at the same time ensuring security and basic rights. This dual focus on innovation and ethical considerations is an essential feature of the European AI strategy.

In April 2021, the Commission presented its AI package, which included a message about the promotion of a European approach for AI, a review of the coordinated plan for artificial intelligence and its proposal for a legal framework for artificial intelligence.

The EU AI Act, which came into force in August 2024 and will be fully applicable by August 2026, is a comprehensive legal framework that regulates AI based on the risk classification and aims to ensure security and basic rights.

In January 2024, the Commission started the AI ​​innovation package to support AI startups and KMUs, including the “Genai4eu” initiative to stimulate the introduction of generative AI.

The European AI office, which was set up in February 2024, is the central EU position for AI expertise, which supports the implementation and implementation of the AI ​​Act and promotes trustworthy AI.

The German AI strategy aims to make Germany a central AI hub in Europe, with investments of a total of 5 billion euros by 2025, whereby the focus on research, development and commitment in SMEs and the public sector.

France has been pursuing a national strategy for KI (NSAI) since 2018, which focuses on building a dynamic ecosystem, ambitious investments and future -oriented vision, with 2.5 billion euros from the France 2030 investment plan.

The EU AI Champions initiative, which started in early 2025, unites over 60 European companies to accelerate the introduction of AI and to promote a competitive European technology ecosystem.

Comparative analysis of AI ecosystems: strengths, weaknesses and opportunities

In order to assess the competitiveness of the individual regions in the global AI race, a comparative analysis of their respective AI ecosystems is essential. This analysis takes into account the strengths, weaknesses and opportunities of each region.

China: The power of the data and the state

Strengthen

• State support: strong, top-down state commitment and considerable financial support.
• Data availability: Access to a huge amount of consumption data due to the large population and digital networking, with a historically less strict regulatory environment in terms of data protection.
• Closed ecosystem: a large internal market and a focus on the construction of local AI models and technologies, which promotes a certain level of self -sufficiency.
• Aggressive investments: Significant financing in both domestic and foreign AI companies.
• Fast implementation: Strong capacity for the large-scale provision of AI technologies in certain sectors such as mobile payments and high-speed trains.

Weaken

• Lack of domestic AI talents: Although the number grows quickly, China is still behind the USA, which affects first-class AI researchers and experienced talents.
• Depending on foreign nuclear technologies: lack of nuclear technologies developed inland, especially in the case of advanced semiconductors, creates vulnerability.
• AI implementation gap: Challenges in the spread and introduction of AI breakthroughs in a wide range of productive processes beyond consumer-oriented applications.
• Diversity of the data environment: Although China has a great depth of user data, his data environment could lag over compared to other regions in terms of diversity.

USA: innovation, capital and talent

Strengthen

• Innovation center: leading universities worldwide, research institutions and the entrepreneurial culture of Silicon Valley are driving groundbreaking innovations in the field of AI.
• Talent pool: Leading for first-class AI researchers and attracts global talents.
• Venture capital: robust venture capital ecosystem with massive investments in AI companies.
• Technological infrastructure: advantage in the case of advanced semiconductor technology and cloud computing capacities.
• Strong protection of intellectual property: framework that promotes and protects AI innovations.

Weaken

• Causes regarding ethical use and distortions: The rapid development of the AI ​​raises concerns about unpredictable abilities and potential for abuse, which undermines public trust.
• Causes regarding data protection: Strictly data protection regulations than in China can sometimes limit the availability and use of data for AI training.
• Uneven distribution of the advantages: The market-oriented approach could lead to an uneven distribution of the AI ​​advantages in society.
• Potential reductions in federal funds: proposed budget cuts for state research institutions could endanger the AI ​​ecosystem.
• Infrastructure challenges: The growing need for computing power for AI development represents infrastructure challenges.
• Explanability and transparency: In the lack of explanability in some AI systems, the risk of undermining trust and hindering the introduction to security-critical sectors.

Europe: Ethical AI and industrial strengths

Strengthen

• Strong focus on ethics and regulation: The EU AI Act and the GDPR create a strong framework for trustworthy and human -centered AI, which can potentially create a competitive advantage in markets that appreciate ethical considerations and data protection.
• Strong industrial basis: Europe has a strong presence in sectors such as manufacturing, automotive and healthcare that offer valuable data and areas of application for AI.
• Leading AI research and talents in specific areas: Certain European countries and institutions are leaders in AI research, especially in areas such as robotics and AI services.
• Focus on open source initiatives: The emphasis on open source AI models promotes transparency and cooperation.
• International cooperation: strong focus on European and international networking and cooperation in AI research and development.

Weaken

• Fragmentation of the digital market: The EU's digital market is still fragmented, which hinders the scaling of AI solutions across the Member States.
• Difficulties in recruiting human capital and external investments: Europe faces challenges in recruiting top AI talents and considerable external investments compared to the USA.
• A lack of commercial competitiveness (historical): Historically, Europe has been difficult to implement its research strengths into commercially successful AI products and services.
• Lower acceptance of AI: European organizations are lagging behind their American counterparts in the introduction of AI technologies.
• Investment gap compared to the USA and China: The total investments in AI in Europe are significantly lower than in the USA and China.
• Slow commercialization of research results: EU-financed AI projects have not always been effectively commercialized or used.
• Ineffective coordination between the EU and Member States: A lack of governance instruments have limited the effectiveness of coordination in the event of AI efforts.

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Europe's potential competitive advantages: ethical AI and strategic niche - picture: xpert.digital

Europe's potential competitive advantages: ethical AI and strategic niches

Despite the challenges in front of which Europe is facing, the region has the potential to play an important role in global AI competition. However, this requires the use of your specific competitive advantages.

In the core of every sustainable success lies human trust - a currency that does not replace cost accounting and cannot ever shape artificial intelligence. Efficiency may shine at short notice, AI may tempt - but only trust and reliability carry success through time. Therefore, only a trustworthy AI has future chances in the long run. That is why Europe, which is behind a trustworthy European AI, clearly has the better cards compared to the USA and China. - Konrad Wolfnestein, Xpert.digital

Ethical guidelines and data protection regulations: a “Brussels effect”?

The EU AI Act emphasizes ethical principles such as respect for human autonomy, avoiding damage, fairness and responsibility. The law aims to ensure that AI systems are safe, transparent, understandable, not discriminatory and environmentally friendly. Strong data protection regulations such as the GDPR complement the AI ​​Act and ensure a responsible handling of data in AI applications.

Europe's strict ethical and data protection regulations can represent a significant competitive advantage by strengthening public trust and attracting companies and users who prioritize responsible AI. This could lead to a “Brussels effect” in which EU standards become global benchmarks.

Focus on strategic niches: robotics, AI services and more

The EU has a comparative advantage in the areas of autonomous robotics and AI services. Europe has one of the world's highest specializations in autonomous robotics. The focus and further investments in these areas of existing strength can enable Europe to establish a global leadership position in niche areas of AI.

European pharmaceutical companies are increasingly relying on AI-supported protein design. This underlines a specific industry in which European AI makes significant progress. The identification and support of such industry-specific AI applications can drive innovation and competitiveness in important European sectors.

Europe's competitiveness in the global AI competition: a critical assessment

The competitiveness of Europe in the global AI competition is the subject of numerous analyzes, news articles and expert opinions. The general assessment is that Europe is currently behind the USA and China in the AI ​​race.

The EU's AI investments do not keep pace with the global market leaders. Europe's competitiveness in the field of AI depends on the development of skills, whereby the ongoing qualification gaps have to be closed. Europe could reach an almost nationwide introduction of AI in companies by 2030, but startups are currently leading to promote innovations.

However, it is also emphasized that Europe has considerable strengths that can use it to improve its competitive position.

Europe can take a cross -generational opportunity through leadership in the area of ​​the AKI used and its integration into the European industrial nose. Although Europe produces first-class AI research, this technical know-how still has to convert into scalable economic success. Europe lags behind the USA with external expenses for AI infrastructure, software and services.

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Europe's path to the AI ​​leadership

The global race for AI pre-rules is a complex and dynamic competition that is constantly evolving. China and the United States continue to invest considerable sums and pursue ambitious strategies to consolidate their positions. Europe, on the other hand, faces the challenge of using its specific strengths and at the same time overcoming existing weaknesses in order to be able to exist in global competition.

Europe has the potential to use its ethical guidelines and data protection regulations as competitive advantages and to play a leading role in specific research areas such as robotics. However, in order to sustainably strengthen its competitiveness in the global AI competition, further efforts are required in the areas of financing, talent development, market integration and the effective implementation of research results in commercially successful applications. The initiatives at EU level and in individual Member States as well as the commitment of European companies indicate growing awareness of the need to strengthen their own capacities and to define a clear position in the global AI ecosystem.

Recommendations for Europe: Strategies for successful AI future

In order to strengthen its position in the global AI competition, Europe should take the following recommendations into account:

Increasing and more targeted investments

Although initiatives such as Investai are decisive, Europe must ensure sustainable and strategically oriented financing, both publicly and privately, in key areas such as AI infrastructure, talent development and the commercialization of research results. The focus should be on areas where Europe has a competitive advantage or strategic importance. Europe should consider public innovation in AI applications for sectors such as healthcare and defense in order to stimulate demand and innovation.

Closure of the qualification gap

Comprehensive programs for further training and retraining of European workers in the area of ​​AI should be implemented, from basic knowledge to advanced technical skills. The recruitment and binding of international AI talents through favorable visual moods and research opportunities is crucial. A focus should be on the development of skills in responsible and green AI, where Europe already shows a leadership role.

Promotion of a uniform digital market

The fragmentation of the EU's digital market must be reduced to facilitate the scaling of AI solutions across the Member States. Regulations should be tightened and the cross -border data exchange should be promoted while maintaining the data protection standards. The EU should strive for an “internal market for data” to promote AI investments and innovations.

Strengthening the transfer of research results into commercial applications

AI startups and SMEs should be supported and promoted to bridge the gap between research results and successful commercial products. Cooperation between universities and industry should be intensified. The establishment of a “CERN for AI” to promote large -scale collaborative research and innovation could be considered.

Promotion of AI introduction in all industries

The introduction of AI technologies in all European industries, especially in sectors in which Europe is already strongly represented, should be promoted and relieved. Incentives and support for the integration of AI into their business should be created. Successful applications and advantages of KI introduction should be emphasized in order to promote broader acceptance.

Preservation and use of the ethical and regulatory advantage

The development and use of trustworthy AI by the EU AI Act and other initiatives should continue to be funded. Europe should position itself as a global market leader in the area of ​​responsible AI and attract users and companies that prioritize ethical considerations and data protection. The EU's ethical AI frame should be actively promoted as a global standard.

Improvement of coordination and governance

The coordination and the exchange of information between the European Commission and the Member States in relation to AI strategies and investments should be improved to ensure more coherent and effective overall approach. The role and resources of the European AI office should be strengthened in order to facilitate this coordination and offer expert advice.

Focus on strategic niches

The investments and the expansion of existing strengths in areas such as robotics and AI services should continue to establish a global management position in specific AI domains. Other emerging areas in which Europe has a strong research base or unique industrial advantages should be identified and promoted.

Navigate in the unknown terrain of the AI

The race for AI pre-rules is not only a competition for technological superiority, but also a struggle for the design of the future of our society. Each of the three main regions - China, the USA and Europe - faces unique challenges and opportunities while they move in this unknown terrain.

China: The balance between progress and control

China's centralized approach has made it possible to quickly make progress in the AI, especially in areas such as facial recognition and intelligent cities. However, this approach also raises concerns about data protection, surveillance and potential for abuse. The Chinese government faces the challenge of promoting innovations and at the same time ensuring that the AI ​​is developed and used in accordance with its social and political goals.

Another challenge for China is the dependence on foreign nuclear technologies, especially in the case of advanced semiconductors. The American export controls have made this susceptibility clear and forced China to strengthen his efforts to develop domestic chipfole capacity.

USA: Ethical dilemma and the need for regulation

The United States has a long tradition of innovation and entrepreneurship that made it possible for them to be a leader in the AI ​​area. However, the market -oriented approach also raises concerns about the ethical use of the AI, distortions in algorithms and the unequal distribution of the advantages.

The US government faces the challenge of creating a regulatory framework that promotes innovations and at the same time reduces the potential risks of AI. This requires a delicate balancing act that takes into account the interests of companies, researchers and the public.

In addition, the United States has to invest in the further training and retraining of its workforce to ensure that they are equipped for the new jobs and possibilities that are created by AI.

Europe: Ethical leadership and strengthening the internal market

Europe has set itself the goal of developing an ethical and trustworthy AI who respects the fundamental rights and values ​​of the citizens. The EU AI Act is a pioneering law that aims to ensure that AI systems are safe, transparent and accountable.

However, Europe faces the challenge of transforming its ethical principles into a competitive advantage. This requires the creation of an innovation-friendly environment to stimulate the company to develop and implement ethical AI solutions.

In addition, Europe has to strengthen its digital internal market to facilitate the scaling of AI solutions across Member States. This requires the removal of regulatory obstacles and the promotion of cross -border data exchange.

The way to the future: cooperation and a sense of responsibility

The race for AI pre-rules is not only a competition between nations, but also an opportunity to cooperate and to progress together. The development and use of AI require a global approach that takes into account the interests of all stakeholders.

International cooperation is crucial to develop common standards and ethical guidelines for the development and use of AI. This can help ensure that AI is used for the benefit of humanity and not to strengthen inequalities or to create new threats.

In addition, it is important to raise awareness of the potential risks and advantages of the AI ​​and to involve the public in the decision -making process. Only through an informed and committed public can it be ensured that the AI ​​is developed and used in accordance with our common values ​​and goals.

The future of the AI ​​is not in the hands of a single nation or a single company. It is in the hands of all of us. By working together and acting responsibly, we can ensure that the AI ​​becomes a power of a good thing that improves our societies, strengthens our economies and ensures our future.

A call to action: Europe's opportunity to design the AI ​​revolution

Europe is on a crossroads. It has the opportunity to take on a leading role in the design of the AI ​​revolution and make the world a better place.

In order to achieve this goal, Europe must use its specific strengths, overcome its weaknesses and develop a long -term vision for the development and use of AI. This requires a concerted effort of governments, companies, researchers and the public.

Europe must invest in the further training and retraining of its workforce to ensure that they are prepared for the new jobs and possibilities that are created by AI. It has to create an innovation-friendly environment to encourage the company to develop and implement ethical AI solutions. And it has to strengthen its digital internal market to facilitate the scaling of AI solutions across Member States.

The challenges are great, but the chances are even greater. By using its ethical principles, its industrial strength and its innovation spirit, Europe can shape the AI ​​revolution and create a better future for all of us. The time to act is now.

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