Is the EU’s AI Act Merely a Distraction from Europe’s Productivity Problem?
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Zach Meyers
Abstract
Solving the EU’s productivity problem will require greater use of technologies. Artificial intelligence is of particular interest given its potential to boost productivity in the services sector, where productivity growth in Europe has been particularly weak. While touted as a mechanism to boost trust in and the use of AI in Europe, the EU’s AI Act risks dampening investment. Aspects of its design and implementation should mitigate these risks, however, so that the overall impact of the bloc’s landmark law on European productivity will likely prove modest. The bigger problem is that European leaders’ focus on the law has detracted from more important steps to boost productivity – such as developing the EU’s capital markets union, addressing the lack of digital skills, and developing the single market to boost business dynamism.
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Articles in the same Issue
- Frontmatter
- Editorial
- Editorial: Productivity Growth in the Age of AI
- Policy Papers (No Special Focus)
- Inflation and Fiscal Policy: Is There a Threshold Effect in the Fiscal Reaction Function?
- Whither the Walking Dead? The Consequences of Artificial Intelligence for Zombie Firms
- The Energy Transition and Its Macroeconomic Effects
- The Potential and Distributional Effects of CBAM Revenues as a New EU Own Resource
- Will Geopolitics Accelerate China’s Drive Towards De-Dollarization?
- The Political Economy of Academic Freedom
- Policy Forum: Productivity Growth in the Age of AI
- Macroeconomic Productivity Effects of Artificial Intelligence
- New Technologies: End of Work or Structural Change?
- The AI Revolution: A New Paradigm of Economic Order
- The Interplay of Humans, Technology, and Organizations in Realizing AI’s Productivity Promise
- How Can Artificial Intelligence Transform Asset Management?
- Is the EU’s AI Act Merely a Distraction from Europe’s Productivity Problem?
- AI in Europe – Is Regulation the Answer to Being a Laggard?
Articles in the same Issue
- Frontmatter
- Editorial
- Editorial: Productivity Growth in the Age of AI
- Policy Papers (No Special Focus)
- Inflation and Fiscal Policy: Is There a Threshold Effect in the Fiscal Reaction Function?
- Whither the Walking Dead? The Consequences of Artificial Intelligence for Zombie Firms
- The Energy Transition and Its Macroeconomic Effects
- The Potential and Distributional Effects of CBAM Revenues as a New EU Own Resource
- Will Geopolitics Accelerate China’s Drive Towards De-Dollarization?
- The Political Economy of Academic Freedom
- Policy Forum: Productivity Growth in the Age of AI
- Macroeconomic Productivity Effects of Artificial Intelligence
- New Technologies: End of Work or Structural Change?
- The AI Revolution: A New Paradigm of Economic Order
- The Interplay of Humans, Technology, and Organizations in Realizing AI’s Productivity Promise
- How Can Artificial Intelligence Transform Asset Management?
- Is the EU’s AI Act Merely a Distraction from Europe’s Productivity Problem?
- AI in Europe – Is Regulation the Answer to Being a Laggard?
