1、October 2024QuantumBlack,AI by McKinseyTime to place our bets:Europes AI opportunityBoosting Europes competitiveness across the AI value chain.by Alexander Sukharevsky,Eric Hazan,Sven Smit,Marc-Antoine de la Chevasnerie,Marc de Jong,Solveigh Hieronimus,Jan Mischke,and Guillaume DagorretAt a glance A

2、 three-lens approachon adoption,creation,and energyis required to assess Europes competitiveness in the emerging generative AI(gen AI)economy.While much of the current discourse centers around large language models(LLMs),European policy makers and business leaders must look beyond LLMs.Adopting a ho

3、listic approach to capitalize fully on gen AIs potential could boost European labor productivity by up to 3 percent annually through 2030.On adoption,European organizations lag behind their US counterparts by 45 to 70percent.Yet this is where most of gen AIs economic potential lies.With the technolo

4、gy still in its early stages and much of its productivity gains yet to be unlocked,the window of opportunity for Europe remains wide open.On creation,Europe leads in only one of the eight segments of a simplified gen AI value chain:AI semiconductor equipment.Europe is a challenger in three other seg

5、ments:foundation models,AI applications,and AI services.But it has below 5 percent market share in the remaining four:raw materials,AI semiconductor design,AI semiconductor manufacturing,and cloud infrastructure and supercomputers.On energy,gen AI is expected to accelerate data center power demand,p

6、otentially accounting for more than 5 percent of Europes total electricity consumption by 2030.Without competitive electricity prices,it becomes less likely that European data centers will host gen AI applications and services.1 In this article,unless specified otherwise,“generative AI”(gen AI)encom