Google Exec: AI Prices Plummet, Europe Can Compete

Kent Walker, Google parent Alphabet's president of global affairs, has stated that intense competition among major technology companies and startups is causing AI prices to fall at an "astonishing rate." This competitive environment, he argues, presents significant opportunities for European businesses to adopt and leverage AI technologies.

Walker suggested that Europe's focus should be on the broad-based adoption of AI, rather than exclusively developing frontier models. He drew a parallel to scientific innovation, stating that utilizing existing technologies, like a microscope invented by others, can drive progress by enabling the development of new applications.

He emphasized that putting AI to work in sectors such as manufacturing, healthcare, and agriculture is crucial for boosting productivity and competitiveness. This perspective aligns with remarks by European Commission President Ursula von der Leyen on AI's economic importance.

Despite concerns about US dominance, Walker indicated support for a "made with Europe" approach, fostering partnerships. He also noted a growing alignment between Brussels and Washington on the need for flexible AI oversight, acknowledging the rapidly evolving nature of AI models and safety challenges.

The EU's AI Act, which came into force in 2024, is seen as a rigorous framework, but Walker suggested that its enforcement needs to be nimble and regularly updated to address new issues that emerge every six months.