The Future of Artificial Intelligence in Europe:
Opportunities, Challenges, and the Impact of Legislation
Generative AI is no longer a futuristic concept—it's here, and it's transforming the way businesses operate at every level. From automating processes and enhancing decision-making to driving innovation and redefining entire industries, AI has become a game-changer for startups and scale-ups. But as AI adoption accelerates, a critical question emerges: Can Europe keep up? Experts warn that stringent AI laws might force startups to look elsewhere for opportunities, potentially putting Europe at a competitive disadvantage.
In this article, industry leaders – including Tom de Block (Google), Sven Arnauts (delaware), and Anaïs De Boulle (Deloitte) – share their insights on how AI is reshaping businesses, the impact of regulation, and the key investments needed to stay ahead in the AI-driven economy.
Generative AI, the Gamechanger for Start-ups and Scale-ups
Generative AI has taken the technology world by storm. Technologies such as ChatGPT, Gemini and Claude, which are capable of generating natural language, have completely changed the way companies communicate, manage customer interactions and optimize internal processes. What makes generative AI so powerful is the accessibility and speed with which it can be applied. Companies no longer need deep technical expertise to effectively integrate AI into their work processes, because many of the toughest work processes - such as model training - are already done in advance. This significantly lowers the barrier to adoption.
Tom de Block, Head of Google Belgium and Luxembourg, emphasizes the transformative potential of generative AI: "Generative AI has brought to life something we’ve been dreaming of for decades: a computer that understands you and can take more of your work off your hands, while being easier to use than ever. We’re also increasingly seeing how valuable AI can be in science, such as in Belgium, where over 15,000 scientists are using AlphaFold to accelerate the development of new medicines." He believes that AI will increase productivity by taking over repetitive and complex tasks, giving workers more time for other important activities.
Additionally, AI has changed the perception of technology among consumers. Where technology was previously seen mostly as a tool, AI is now often viewed as an intelligent partner that can assist with a wide range of tasks. “There is a growing expectation that technology will be more proactive, personalized, and intuitive. It’s up to us to meet that demand,” says Tom. This not only makes AI relevant for businesses but has also profoundly changed the way consumers use and value technology.
Sven Arnauts, Global AI Lead at delaware, notes that generative AI is still in an exploratory phase for many businesses. “Companies are experimenting with different use cases, trying to figure out where GenAI adds the most value,” he says. For some, this might mean automating administrative tasks such as report generation or enhancing knowledge management, while others are seeking more complex applications. “While the speed of adoption varies, there is no doubt that the potential for generative AI to transform industries is immense,” he adds.
The Impact of Legislation on AI Innovation in Europe
As the use of AI accelerates, Europe is grappling with legislation that could either fuel or hinder technological growth. The European Union has introduced the AI Act, which aims to provide a regulatory framework for AI, ensuring ethical use and safety. While the intention behind this legislation is to protect users and ensure responsible AI practices, experts have expressed concerns that it may inhibit innovation, particularly in start-ups and scale-ups.
Tom de Block, head of Google Belgium and Luxembourg, emphasizes the challenges posed by the regulatory environment in Europe, particularly when it comes to AI. "The main barrier in Europe is a shortage of AI experts who can be at the forefront of groundbreaking AI innovations," he says. "At the same time, it would be disappointing if that regulation restricts new innovation and stands in the way of new AI experts, developments, and companies." He further highlights the need for a balanced regulatory approach: "Governments can invest in AI research and development, for example through education or improved infrastructure. They can also create regulations that strike the right balance between safe and rapid AI development."
Anaïs De Boulle, Partner at Deloitte, recognizes the concerns but emphasizes the importance of a clear regulatory framework. “While there are obviously challenges, the AI Act provides much-needed structure and clarity,” she explains. “It’s true that new regulations require time and effort, especially as many organizations are still adapting to GDPR. However, the AI Act is not overly complex and primarily focuses on high-risk applications, where most requirements revolve around documentation—something a good data scientist already does. More importantly, this legislation fosters trust and transparency, giving Europe the opportunity to position ‘AI made in EU’ as a strong brand and a long-term global competitive advantage. If leveraged wisely, it can drive innovation while strengthening trust in European technology.”
While the AI Act presents a valuable opportunity for Europe to lead in trustworthy AI, De Boulle and De Block acknowledge the challenge of balancing strict regulations with innovation. Ensuring ethical and safe AI is crucial, but excessive regulation could slow progress, potentially allowing other regions, such as the U.S. and China, to outpace Europe in AI development.
Sven Arnauts from delaware agrees that while the AI Act aims to build trust, it also creates uncertainty for companies. “The AI Act’s restrictive nature may force businesses to slow down or even reconsider their plans for AI implementation,” he says. “Regulations should support innovation rather than stifle it. For Europe to be a leader in AI, it must find a way to enable responsible growth while fostering an environment of innovation.”
AI and the Future of Businesses investing in People and Process Optimization
Despite the challenges posed by regulation, AI offers significant opportunities for businesses, especially when it comes to productivity and process optimization. According to experts at delaware and Deloitte, adopting AI can streamline operations, enhance decision-making, and drive significant cost savings. However, one of the critical factors in successfully implementing AI is investing in human capital.
Tom De Block emphasizes that businesses must invest not only in the right technology but also in their workforce. “AI automates repetitive tasks, freeing up time for more complex and creative work. It’s also enhancing customer service with better chatbots and improving data analysis and decision-making. AI processes vast amounts of data faster than humans, making business processes more efficient and leading to better outcomes,” he says. This is essential for both large enterprises and start-ups.
However, De Block also highlights that businesses need to invest in people to unlock AI’s full potential: “If we don’t want to miss the AI boat, it’s crucial that everyone contributes, such as governments with the right strategic vision and space for the manifestation of AI innovation and infrastructure, and companies with the willingness to embrace the new technology, for example by training their employees.”
Google plays a role in this by creating AI training hubs: “Google plays a role in this through the AI training hub, where people can get acquainted with the use of AI.”
Sven Arnauts of delaware agrees, highlighting that investing in people is just as important as investing in AI tools. “Companies should continue to train their employees to make the most out of generative AI. This technology can evolve at lightning speed, so ensuring that employees can use it effectively will make a huge difference in their ability to innovate,” he explains. This is particularly important for smaller companies that may have fewer resources and need to leverage every available opportunity to grow and compete.
Deloitte’s Partner Anaïs De Boulle stresses the importance of trust in AI adoption. “The AI Act doesn’t regulate AI itself but its specific use cases, emphasizing transparency and responsible use—key to building trust,” she explains. “AI adoption in the EU is still too low, and if we want broader acceptance, we must invest in security and trust. Under the motto ‘you need to trust the black box,’ the AI Act provides a solid foundation for safe and ethical AI, ultimately driving innovation forward.
Navigating the Cost and Ethical Challenges of AI
While AI offers immense potential, its widespread adoption raises concerns about data collection and ethical practices. As de Block highlights, "Google strives not only to lead in AI innovation but also in AI safety. That’s why we were the first major company with AI principles, which all our innovations must adhere to." He emphasizes that these principles include aspects such as bias, transparency, and consent: "The principles describe conditions related to bias, transparency, and consent. For instance, we give content publishers the ability to indicate if they don’t want their content used for training purposes."
However, as AI becomes more integrated into business operations, concerns about the environmental impact of data collection and processing intensify. Google is already taking steps to mitigate this by using AI to improve energy efficiency in its data centers. "Since we started using AI to manage our data center cooling systems, we’ve reduced energy consumption by around 25%," says de Block. "The Google data center in Belgium already uses CO2-free energy 80% of the time. We strive to operate carbon-neutral by 2030."
The Long-Term GenAI Economy and Economic Growth
In the long term, generative AI has the potential to create an entirely new economic landscape. Tom de Block of Google envisions a future where AI-driven companies emerge and make a significant contribution to GDP, but stresses that this growth will only be achievable if AI is embraced across all sectors, not just by AI companies. "We started the Gemini era last year, which is already having a big impact," he says. "This year, we expect a lot from agentic AI—AI that can carry out practical tasks, from filling in forms to searching for things on the web and placing them into a spreadsheet. This is the next step where AI can prove its value.” These new companies, built around AI technologies, will leverage these tools to enhance their business models, reduce costs, and create new products and services. "I think multimodal AI will become more important, where AI can process and understand different types of data, such as text, images, and audio, at the same time," de Block adds. This shift could lead to the rise of a “GenAI economy,” reshaping how businesses interact with customers and how industries operate.
However, realizing the full potential of generative AI will require significant investment in both infrastructure and regulation. Sven Arnauts from delaware acknowledges that large-scale adoption of AI will require foundational changes. “For GenAI to truly transform economies, we need high quality infrastructure, skilled talent, and a regulatory environment that supports innovation,” he says.
Anaïs De Boulle from Deloitte highlights the economic potential of generative AI, noting that while the AI Act may require initial compliance investments, it ultimately fosters trust and differentiation. While Europe lags behind the U.S. and China, its focus on secure data and public infrastructure like supercomputers offers a unique advantage. By embracing compliance, startups can turn regulation into a competitive edge, attracting investors and strengthening Europe’s position in the global AI economy.
Advances in artificial intelligence present both opportunities and challenges for Europe, as the technology evolves rapidly and businesses explore new ways to integrate AI into their processes. However, European legislation, particularly the AI Act, poses a significant challenge by raising concerns about Europe’s ability to innovate at the same pace as other regions. Companies must continue to invest in people and technology to maintain their competitive edge while ensuring responsible AI use. Insights from Google, delaware, and Deloitte highlight the potential of AI in Europe, with Tom de Block from Google emphasizing the need for a competitive regulatory environment, Sven Arnauts of delaware stressing the importance of investing in human capital and technology, and Anaïs De Boulle from Deloitte urging Europe to act quickly and intelligently. By collaborating, businesses and legislators can create a roadmap that enables Europe to harness AI's power and secure its position as a global leader in the AI revolution. Be sure to visit SuperNova 2025 to further explore this topic and visit these industry experts – at one of our booths or on stage.