Around 60% of workers in advanced European economies are employed in occupations highly exposed to AI, according to an IMF paper prepared for an informal meeting of EU finance ministers in Dublin on September 18–19.

Some workers are expected to benefit as AI increases productivity, while others could face displacement as routine tasks become increasingly automated.

The IMF estimates that AI could increase European productivity by around 1% over the next five years, but warned that the economic benefits are unlikely to be distributed equally between countries, regions and workers.

Energy Demand Rising

Europe also faces a growing infrastructure challenge.

Data centres already consume roughly 3% of Europe's electricity, with major technology hubs including Amsterdam, Frankfurt, Paris and Dublin facing increasing pressure on local power networks.

The IMF called for greater investment in cross-border electricity infrastructure and deeper integration of Europe's energy market as AI-driven computing demand expands.

Europe Risks Foreign AI Dependence

The IMF also warned that Europe could become increasingly dependent on technology developed in the United States and China, which currently dominate advanced AI development.

It said Europe needs significantly greater investment in its own AI industry if it wants to strengthen technological independence and remain competitive.

The warning presents European governments with a difficult policy challenge: capturing AI's potential economic benefits while protecting workers, expanding energy infrastructure and reducing strategic dependence on foreign technology.

Sunatimes.com