As published on: https://m.independent.ie/opinion/comment/caroline-dunlea-ireland-and-the-eu-must-put-clear-ai-policies-in-place-so-we-are-not-left-behind/a965505182.html

AI has taken centre stage in the past week, with Europe facing a sharp reminder of how far it has to go.

Considering recent AI developments around the world, namely the market shock caused by Chinese model DeepSeek, and Elon Musk reportedly sizing up a bid for OpenAI, you might wonder “where is Europe in this debate?”.

European leaders have asked this question themselves several times as they aim to redress the competitiveness gap.

As the AI summit in Paris and the European Commission’s work programme have shown, the EU sees artificial intelligence as a key priority.

The need for balanced AI regulation has long been called for. Taoiseach Micheál Martin has become the latest to call for the EU to find its voice in the AI debate.

The Draghi report on EU competitiveness had warned that Europe had missed the first wave of AI innovation, and as the US and China jostle for dominance, nobody seems to know where the EU fits into the AI picture.

French president Emmanuel Macron welcomed the world to Paris at the weekend and said that the EU must build a system where AI can be trusted in a deregulated environment.

US vice-president JD Vance told European leaders to “look to this new frontier with optimism rather than trepidation”.

The Programme for Government here commits to equipping educational and professional networks with leading knowledge in AI, with the National Semiconductor Strategy being developed under the EU Chips Act.

The appointment of Niamh Smyth as the first junior minister for AI is another welcome move. The Commission is to revise proposals for AI factories in the first quarter of this year.

There is clearly strong support from the Irish Government for AI, but the investment must target the right places. The National AI Strategy should root AI knowledge firmly in our educational and professional institutions and allow our SME community to grow.

America innovates, China imitates, Europe regulates

As we see through our own membership at Digital Business Ireland, there is a thriving AI start-up community in this country. In fact, according to the Central Statistics Office, 15pc of all businesses are using AI, which has nearly doubled from last year. Policymakers should look to this community as they aim to develop best-in-class AI expertise.

The EU must accept that the best way forward is sensible regulation; a system that balances the need for trust and safety in AI with a business environment not burdened by overregulation. Its first move cannot be, however, to regulate European AI out of being globally competitive.

“America innovates, China imitates, Europe regulates” must not be repeated here, otherwise the AI revolution will bypass the continent. Europe’s leaders have acknowledged this in words, but it must be followed by action.

This week, Arm Holdings in the UK announced its own chip, with Meta as one of its first customers. The sudden success of Mistral AI’s Le Chat model in France is a sign that the EU can accommodate rapid AI development.

However, we must see clear European AI policy taking shape. When the commission rolls out AI policies over the next five years, the ambition must match the rhetoric of this week, otherwise no lessons will have been learnt.

Of course, Ireland should play a key role in ensuring that AI regulation at EU level is public and business-friendly. We have reaped the benefits of a business-friendly environment via multinational investment and domestic innovation.

However, recent changes in the EU mean that every member state must play its own part to attract maximum investment. The EU has loosened the restrictions on state aid across the board and larger member states’ investment in enticing business to their countries may erode Ireland’s advantage in attracting investment.

AI provides an opportunity for Irish businesses to be more competitive in a changing world. Ireland should be a champion for investment into AI and digital innovation to ensure that the EU and Ireland are not left behind again by countries like the United States and China, as the next wave of AI and digital investment comes around.

While Ireland must create the conditions for this investment to feel welcome, we must be willing to nurture our own AI community to allow it to compete.

We must give the Irish and European AI community every chance to succeed, or else we will be scratching our heads wondering why we are so far behind, again.

Caroline Dunlea is chairperson of Digital Business Ireland

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