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Home Artificial Intelligence (AI)

EU struggles to keep pace with China on AI adoption due to regulatory challenges

Adam Smith – Tech Writer & Blogger by Adam Smith – Tech Writer & Blogger
October 1, 2025
in Artificial Intelligence (AI)
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EU struggles to keep pace with China on AI adoption due to regulatory challenges
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Introduction to AI Adoption in the EU

Google’s President of Global Affairs, Kent Walker, has urged the EU to increase AI adoption through a smarter regulatory approach amid increasing competition, particularly from China. Speaking at the Competitive Europe Summit in Brussels, Walker positioned AI as a tool that philosophers and economists call an “invention of a method of invention” which will reshape nearly every aspect of modern life and define the future of geopolitical leadership.

The Current State of AI Adoption in the EU

While acknowledging European Commission President Ursula von der Leyen’s recent assertion that getting AI right is essential, Walker pointed to a concerning adoption deficit in the EU. He highlighted intense geopolitical competition and how government investment in China is fuelling integration of AI across its economy. The latest estimates suggest up to 83% of Chinese companies are already using generative AI, meanwhile, the European Commission estimates that European adoption is hovering at around 14%.

Regulatory Challenges in the EU

According to Walker, this AI adoption lag is exacerbated by a regulatory environment that EU companies find increasingly difficult to navigate. He noted that since 2019, over one hundred new EU regulations have targeted the digital economy, leading to a situation where “more than 60% of Europe’s businesses now say regulation is their biggest obstacle to investment in the EU.” A recent Danish government study estimated new regulations could impose an additional €124 billion in annual costs on businesses and public administration in Europe.

Proposed Strategy for the EU

In response to these challenges, the Google executive proposed a direct, three-part strategy for the EU to reclaim its AI footing: laying a foundation of smart policy, building out adoption through workforce skilling, and scaling up to support widespread innovation. The foundational step requires a simplification of the AI regulatory landscape to create a framework supportive of innovation like China, but while ensuring regulation that is focused, aligned, and balanced.

Smart Policy and Regulatory Framework

Regulating in ways that support AI innovation means focusing on the real-world effects of AI. This approach involves filling specific regulatory gaps rather than implementing sweeping rules that could stifle beneficial and lower-risk applications. Walker urged regulators to “oversee outputs, not inputs—to manage risks and consequences, not micromanage science.” An aligned regulatory framework would apply existing regulations where appropriate and harmonise international standards, allowing providers to offer their best and latest AI models to EU citizens and companies.

Building Out AI Adoption

The second part of the strategy focuses on building out AI adoption in the EU by equipping people and companies to use these rapidly advancing tools. Walker illustrated the pace of change by revealing that Google’s new AI models are now “300x more efficient than the state-of-the-art from just two years ago.” To ensure citizens are not left behind, he championed public-private partnerships to accelerate skills training. Google has helped over 14 million Europeans learn digital skills and has a €15 million AI Opportunity Fund to support vulnerable people in gaining foundational AI knowledge.

Scaling Up AI Adoption

Finally, Walker described the third stage: scaling up. He sought to move the conversation beyond chatbots and towards the scientific breakthroughs AI is enabling. He provided powerful examples already in motion, such as Google DeepMind’s AlphaFold, which has created a database of nearly every protein known to science, now used by over three million researchers worldwide. This tool is helping scientists at the University of Malta better understand the genetic causes of osteoporosis.

Conclusion

The tools are ready, and the potential is clear. European leaders say AI leadership is at the top of their agenda—and it’s time to make those ambitions a reality. This can be achieved by clearing regulatory hurdles for innovators, accelerating research through partnership, and scaling the adoption of AI tools to ignite a new era of EU growth and compete against geopolitical rivals like China.

FAQs

  • Q: What is the current state of AI adoption in the EU?
    A: The EU is experiencing a concerning adoption deficit, with only 14% of European companies using generative AI, compared to 83% in China.
  • Q: What are the main challenges facing AI adoption in the EU?
    A: The main challenges are regulatory hurdles, with over 100 new regulations targeting the digital economy since 2019, and a lack of skilled workforce to adopt AI technologies.
  • Q: What strategy has been proposed to increase AI adoption in the EU?
    A: A three-part strategy has been proposed: laying a foundation of smart policy, building out adoption through workforce skilling, and scaling up to support widespread innovation.
  • Q: How can the EU simplify its regulatory landscape to support AI innovation?
    A: By focusing on real-world effects of AI, filling specific regulatory gaps, and applying existing regulations where appropriate, while harmonising international standards.
  • Q: What role can public-private partnerships play in accelerating AI adoption in the EU?
    A: Public-private partnerships can help accelerate skills training, ensuring citizens are not left behind, and support vulnerable people in gaining foundational AI knowledge.
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Adam Smith – Tech Writer & Blogger

Adam Smith – Tech Writer & Blogger

Adam Smith is a passionate technology writer with a keen interest in emerging trends, gadgets, and software innovations. With over five years of experience in tech journalism, he has contributed insightful articles to leading tech blogs and online publications. His expertise covers a wide range of topics, including artificial intelligence, cybersecurity, mobile technology, and the latest advancements in consumer electronics. Adam excels in breaking down complex technical concepts into engaging and easy-to-understand content for a diverse audience. Beyond writing, he enjoys testing new gadgets, reviewing software, and staying up to date with the ever-evolving tech industry. His goal is to inform and inspire readers with in-depth analysis and practical insights into the digital world.

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