This article is written by Miguel Chapero, a WES 2025 student journalist and writer for The Stork.
When leading voices in business and academia convened at the recent Warwick Economic Summit panel on “The AI Economy: The Role of Artificial Intelligence in Transforming Industries,” they highlighted both the extraordinary potential of AI and the pitfalls of integrating it too hastily. Dr. Murray Ellender (CEO of e-Consult) underscored how AI can save time and improve accuracy in healthcare, while Professor Thorsten Beck (Director of the Florence School of Banking and Finance) noted its growing role in finance, from fraud detection to difficult lending decisions. Although the panellists correctly stressed the importance of responsible oversight and fair datasets, I would like to highlight another concern: Europe risks falling behind if it does not move decisively to leverage AI’s advantages.
Across the globe, countries are accelerating the development and deployment of artificial intelligence. The United States continues to attract billions in AI venture capital, with big tech giants pouring seemingly endless resources into research. However, it is important to note that major tech companies in the US have unacceptably opened doors to AI in weapon development, such as OpenAI and Google, who have recently repealed commitments to stay out of this industry. Meanwhile, China is also racing ahead with state-backed AI initiatives spanning surveillance, healthcare, and Fintech. Both economies demonstrate a willingness, often controversially, to push the boundaries of data collection. In stark contrast, many European institutions are caught in a cycle of caution and hesitancy.
To be clear, regulation and ethical considerations in AI are necessary. Europe’s high data-protection standards, such as the GDPR (General Data Protection Regulation), and ongoing discussions around the proposed EU AI Act show a serious and important commitment to preventing misuse. Balancing privacy with progress is admirable, especially in high-stakes fields like healthcare or finance. Yet too much red tape can, and already has, stifled innovation. If Europe’s best researchers, startups, and tech entrepreneurs feel forced to move overseas to test AI-driven solutions more freely, the continent’s economy will suffer, and importantly, Europe’s commitment to data-protection standards can be thrown out the window because nobody will be deploying AI in Europe anyways.
However, the consequences of not adopting AI do not stop at diminished economic growth and dangerous ethical standards; they extend deeply into our social fabric as well. Income inequality is likely to widen if European industries fail to embrace AI to drive productivity. Globally, companies that leverage AI are already automating labour-intensive processes, which rather than pushing people out of the workforce, actually fosters demand, and eventually a steady supply, for more highly skilled jobs. Nations and regions slow to follow suit risk being outcompeted, with stagnant wages and limited job opportunities for lower and middle-skilled workers. While wealthier people can adapt by investing in higher education or AI-focused skills, others may find themselves trapped in a cycle of declining prospects. Over time, this dynamic threatens to widen the gap between those able to pivot into tech-driven roles and those left behind.
In healthcare, the disparity in outcomes between countries that embrace AI and those that do not could grow dangerously large. AI tools are already revolutionizing diagnostic procedures, detecting diseases like cancer earlier and more accurately. They also streamline administrative tasks, freeing up clinicians’ time to focus on patient care. In global markets with rapid AI adoption, patients benefit from greater efficiency, such as shorter wait times (something the NHS would greatly benefit from) and personalized treatment. “Healthcare is probably one of the last industries to fully embrace technology, let alone artificial intelligence,” explains Dr Murray Ellender. If European healthcare institutions remain hamstrung by overly cautious regulations or fragmented funding, doctors and nurses will be stuck with outdated systems that limit their capacity to deliver timely and effective care. The end result? Worse outcomes for patients, especially those in historically under-resourced communities.
Moreover, a slower pace of AI adoption threatens to reinforce existing health inequalities within Europe. Resource-rich hospitals and private clinics may have the means to deploy AI-driven diagnostic tools, but publicly funded facilities serving lower-income populations could lag. Pushing for open-source products and making research accessible to all, without having to jump through endless hoops, will ensure that not only the lawyer-filled and rich hospitals have access to this technology. Without targeted investment and a clear political commitment, some European regions, especially rural or economically disadvantaged ones, will experience chronic underinvestment in AI. Over time, this geographic “digital divide” could mirror or even amplify existing inequalities in health, leaving entire swaths of society with second-tier care.
The question is no longer whether AI will transform economies, but rather who will benefit—and who will be left behind. Europe’s emphasis on privacy and ethics is commendable, but it needs to be matched by a firm commitment to integrating this technology swiftly and broadly. Failing to do so could deepen cracks in Europe’s economic and social foundation, particularly around income and healthcare disparities. The opportunity, and the responsibility, are clear: adopt AI proactively, or risk watching inequality grow in its absence.
The views and opinions expressed in this article belong solely to the writer and do not necessarily reflect the views and opinions of the Warwick Economics Summit.
References:
Brookings Institution. The EU AI Act Will Have Global Impact, but a Limited Brussels Effect. 2023, www.brookings.edu/articles/the-eu-ai-act-will-have-global-impact-but-a-limited-brussels-effect.
European Parliamentary Research Service. The Impact of the General Data Protection Regulation (GDPR) on Artificial Intelligence. European Parliament, 2020,
CNIL (Commission Nationale de l’Informatique et des Libertés). The Economic Impact of GDPR, 5 Years On. 2024, www.cnil.fr/en/economic-impact-gdpr-5-years.
Centre for Economic Policy Research (CEPR). Redirecting AI: Privacy Regulation and the Future of Artificial Intelligence. 2024,
World Economic Forum. Lessons from GDPR for Artificial Intelligence Regulation. 2023, www.weforum.org/stories/2023/06/gdpr-artificial-intelligence-regulation-europe-us.
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