AI is the project that could drive European capital markets forward to channel savings where they are needed, says Christine Lagarde. It needs capital on a scale that only markets can provide, and the stakes for Europe could hardly be higher

Will AI suddenly transform the economy and upend our lives? Or is the prospect more mundane? Patrick Minford considers the effects of earlier systemic innovations and believes AI is unlikely to be different from other technology revolutions

Are American tech billionaires adversaries or role models for Europe? Rebecca Christie writes that the EU should ask what it wants from globally influential tech magnates, not just how to curb them

The EU’s AI Act was supposed to enter into full effect on 2 August 2026. But while the transparency layer has come into effect, its high-risk regime has been delayed. Marco Perugini argues that the result is a double bind in which Europe loses regulatory sovereignty whether it enforces its own rules or retreats from them

If frontier AI models can be used to develop their next models, this may lead to an ‘intelligence explosion’ and give a large boost to technological advancement. Davidson et al develop a framework for understanding how AI may transform the economy through new feedback loops

Predictions of the effects of AI on the economy and society tend to focus on productivity growth, job losses, and shifts in the distribution of income. Karen Dynan, Douglas Elmendorf and Louise Sheiner examine various potential scenarios for the macroeconomic effects of AI on US fiscal policy