AI TRENDS | Lagarde Warns Europe Is Sending Too Much Capital to U.S. AI

European Central Bank President Christine Lagarde said eurozone households hold about 440 billion euros in U.S. technology assets, and European capital is flowing heavily into U.S. AI. According to Sina Finance, she made the remarks in Vienna on September 14 during a speech titled "A New Era of Capital: Growth, Sovereignty and Artificial Intelligence." Lagarde said AI penetration in Europe has already exceeded half, but digital investment still lags the United States. She said wider AI adoption could lift productivity by as much as 4% over the next decade and ease fiscal pressure from aging populations. She warned that relying only on imported AI carries risks involving data, supply disruptions, and losing technological leadership. Lagarde said Europe needs to build its own computing power, with the shortfall potentially requiring up to 600 billion euros to close, and develop local AI models. She also said Europe’s innovation financing relies too heavily on banks, that the region does not lack savings, but lacks channels to direct capital, and warned that U.S. AI development carries bubble risks.