Completed for the European Economic and Social Committee (EESC), this report examines the burgeoning generative artificial intelligence (GenAI) and foundation models landscape within the EU, and analyses its impact, technological advancements, and regulatory implications. It details the GenAI value chain, identifying key players and investment trends, revealing a significant US dominance. It then explores GenAI applications across various sectors (automotive, renewable energy and education), highlighting opportunities and challenges.
A SWOT analysis assesses the EU’s position as both a producer and as a user of GenAI. The report provides policy recommendations for fostering a competitive, ethical and inclusive European AI ecosystem, including identifying needs for increased investment, more skills development, and greater regulatory clarity, as well as a need for enhanced collaboration with civil society organisations.
About the Authors
Pierre-Alexandre Balland currently serves as the Chief Data Scientist of the Centre for European Policy Studies and is a Visiting Professor of the Growth Lab at Harvard University.
Olesya Grabova is a Research Assistant in the Global Governance, Regulation, Innovation and Digital Economy (GRID) unit at CEPS.
J. Scott Marcus is an economist, engineer and public policy analyst. He is an Associate Senior Research Fellow in the Global Governance, Regulation, Innovation and Digital Economy (GRID) Unit at the Centre for European Policy Studies (CEPS) and a Professor (part-time) and member of the Scientific Committee of the Centre for a Digital Society, European University Institute (EUI / RSCAS). He also works as an independent consultant dealing with (regulatory) policy regarding electronic communications.
Robert Praas is Data Scientist at CEPS.
Andrea Renda is Director of Research at CEPS since 1 November 2023. He also leads the CEPS Unit on Global Governance, Regulation, Innovation and the Digital Economy (GRID).