The application advantage hypothesis - that Europe can build on AI and compete successfully this way - is emerging as a key strategy for a Europe that is finally realizing that it does not need to compete on the same dimension as the US and China. Far from being a consolation prize, this hypothesis is strategically novel and worth exploring in depth. As we do so we need to decompose it into the key policies that will matter now.
Nicklas Berild Lundblad, a member of the Swedish AI Commission, writes about the EU's position in the global tech competition, based on the premise that the EU can and should compete by adopting new technologies. A few points stand out:
- Public procurement can play a significant role in driving innovation if implemented in a coordinated manner. This is an idea I've heard in many interviews I've done over the years, but have seen less concrete action.
- The role "returning talent" can play. Lundblad focus on the national level, but I think his reasoning holds true for individual organisations as well.
- Regarding regulation, he suggests defining success and failure criteria before implementing new laws, enabling regulators to determine when to sunset or abandon regulations. "Under what criteria should the AI-act be abandoned or revoked?"
- Testbeds and experimentation are essential.
These steps are necessary to facilitate technology diffusion—a critical factor if the goal is to compete based on excellence in adoption.
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