The EU Needs a Mindset Switch to Compete in the Age of AI

30.3.2025

Friedrich Ebert Stiftung

Despite its market power and niche industrial prowess, Europe is struggling to close the innovation gap with the United States and China. But innovation alone won’t help unless new products are also diffused across the economy. The European Union (EU) suffers wide skills gaps compared to its competitors, and while on average Europeans think positively about science, the Union and its member states could do better at promoting a culture that fosters innovation and speeds up technological adoption. The presence of enabling infrastructure and people with adaptive skills and mindset are critical to stay at pace with technological advancements. It is in the nature of new technology to advantage those who are prepared to use it, sometimes reinforcing rather than disrupting existing hierarchies. This dynamic is clear across Europe’s fragmented economic landscape, where the adoption of artificial intelligence (AI) is accelerating in well-resourced hubs while it keeps trailing in less advanced regions. The EU needs to change course. While investing in hard digital skills is paramount to promote adoption in the short run, a deeper shift is also required – one that fosters a problem-solving mindset, equips workers with adaptive skills, and enables the long-term capacity to stay at pace with rapid technological change. In essence, this means undergoing a fundamental reform that starts with education.

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