The expert pointed out the lack of investment funds in Europe for the development of AI

European countries lack long-term investment funds to finance artificial intelligence (AI) development programs, which include the construction of data centers and energy infrastructure. This was reported on January 19 by the Financial Times (FT) newspaper with reference to Hugh Van Steenis, co-chairman of the Council on the Future of Finance at the World Economic Forum.

"Europe's ambitious plans to develop artificial intelligence, data centers, and energy infrastructure are facing an unpleasant — and familiar — financial reality: the continent lacks the long-term investment funds needed to finance them. The task is not easy. The EU estimates that Europe may need to invest €3 trillion in digital and energy infrastructure over the next five years, and this is without taking into account defense and national security costs," the article says.

Among the reasons, Stenis noted the inability of European banks to finance assets with very long maturities, such as data centers, as well as sluggish securitization markets, which should reduce the balance sheet burden. Financing AI infrastructure on a large scale requires the involvement of private capital. Banks and private credit funds should work together to share risks, Steenis writes, noting that American insurance companies are already becoming the driving force behind changes in the infrastructure financing model in Europe.

"If Europe cannot finance even these strategic assets in sufficient volume, then it is difficult to imagine how it will be able to keep up with the times in a broader sense. <...> If investments are not financed, it will slow down economic growth in Europe," the expert warns.

What events in the field of AI took place during the week

CNN reported on January 18 that Americans are increasingly abandoning digital technology in favor of analog hobbies due to fatigue from AI and social media. According to the newspaper, this growth reflects a general cultural shift. Michael's chief merchandising Officer, Stacy Shively, explained that people find traditional needlework a break from digital overload.

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