RAID 2024 Panel Explores AI’s Potential and Challenges in Europe and Beyond
Panel Discussion: Grasping the Opportunities and Threats of AI and Digital Transformation
At RAID 2024, the panel discussion, “Grasping the Opportunities and Threats of AI and Digital Transformation,” brought together notable speakers from across government, policy, and industry.
Moderated by Karine Caunes, Global Program Director and Europe Executive Director of the Center for AI and Digital Policy (CAIDP), the panel featured Werner Stengg, Member of Cabinet for EVP Margrethe Vestager (European Commission); Jon Donenberg, Deputy Director of Technology at the National Economic Council, USA; Jean-François Copé, Deputy Chairman of Fondation Prospective & Innovation and Mayor of Meaux; and Julie Brill, Microsoft’s Chief Privacy Officer and Corporate Vice President of Global Privacy, Safety, and Regulatory Affairs. Their discussion centred on balancing the vast potential of AI with regulatory safeguards, positioning Europe as a digital leader, and fostering international cooperation.
A Focus on Privacy and Ethical AI
Julie Brill, Chief Privacy Officer at Microsoft, opened the discussion by underscoring the necessity of harmonising privacy with technological advancement. She highlighted Microsoft’s commitment to regulatory compliance and emphasised that companies must build trust with users while preserving the agility to innovate. Brill argued that achieving a balance between compliance and innovation is essential for Europe’s digital future, especially as organisations deploy AI across various sectors.
“AI is not just an ordinary technology. It is what we and economists call a general purpose technology, like electricity and the printing press. It is a technology that creates an entire economy around it and really allows societies to flourish.”
Julie Brill, Chief Privacy Officer and Corporate Vice President of Global Privacy, Safety, and Regulatory Affairs, Microsoft
Strengths and Weaknesses in Europe’s Digital Landscape
Werner Stengg identified Europe’s clear commitment to digital transformation. He noted Europe’s proactive governance framework, which he considers a strength, as it provides businesses with much-needed regulatory clarity, fostering innovation in a stable environment. Despite this, Europe faces significant challenges, particularly in scaling up innovations and ensuring uniform implementation across EU member states. Stengg warned of potential regulatory fragmentation that could weaken Europe’s competitive edge, echoing concerns about the challenges of consistent AI policy implementation.
“AI is for me first and foremost an aid to decision making. This intelligence is able to digest data and information in a way that none of us will be able to do, and this will affect each and every one of us, not just big company innovators”
Werner Stengg, Member of Cabinet of EVP Margrethe Vestager – Europe fit for the Digital Age, and Commissioner for Competition, European Commission
Balancing Regulatory Burden and Innovation
Jean-François Copé highlighted Europe’s talent and ambition but underscored that regulatory burdens might stifle growth and discourage innovation. Copé argued that startups often find it challenging to scale due to a lack of investment capital and a complex regulatory environment. Consequently, many promising European startups seek opportunities in more business-friendly markets, particularly in the United States, where less stringent regulations enable faster growth.
“The main challenge is putting the European Union on the stage, not too far from America and China. Having progressed on regulation, we now have to see how we can progress, because if we don’t react within the next few years, Europe will be consumers and nothing else.”
Jean-François Copé, Deputy Chairman, Fondation Prospective & Innovation, Mayor of Meaux, former Budget Minister of France
The Role of International Cooperation
Jon Donenberg broadened the discussion to the global arena, noting that while the EU has been a frontrunner in AI regulation, other jurisdictions are also developing AI frameworks. He highlighted the need for countries to align on fundamental ethical and safety standards, warning that inconsistent regulatory models across nations could lead to complexities for international businesses and hinder collaborative innovation.
As the EU moves forward with its AI Act, an unprecedented regulatory framework, Dragos Tudorache emphasised the importance of successful implementation to demonstrate its viability as a global model. He warned that, without cohesion across member states and consistent application, the regulatory framework risks fragmentation, which could undermine both competitiveness and credibility on the global stage.
“AI is a tool and like any tool, it’s not good or bad. It just depends on how we build it and how we use it. (…) If you build a strong ecosystem of governance, there’s a huge amount of potential value here”
Jon Donenberg, Deputy Director – Technology, National Economic Council, USA
Europe’s AI Competitiveness and Global Leadership
The panel also discussed Europe’s potential to lead in AI research and development, particularly through scientific research exemptions embedded in the AI Act. Stengg highlighted Europe’s “crown jewels”—its top-tier scientific talent and world-class research infrastructures – as key resources that could propel Europe to the forefront of AI-powered science. The EU’s initiative to pool resources for AI research through a proposed European AI Research Council reflects an approach aimed at consolidating research efforts to compete globally, especially with tech giants in the US.
The panellists agreed that while Europe is leading with its regulatory approach, it needs to maintain a balance with innovation incentives. This dual approach could establish a framework for other jurisdictions to follow, provided Europe successfully demonstrates the scalability and flexibility of its AI regulations.
Conclusion: A Pioneering Approach with Global Implications
The RAID 2024 panel underscored that Europe is on a critical path to becoming a leader in digital transformation, with the potential to set the standard for responsible AI governance. However, success will depend on cohesive implementation across EU member states and an adaptable approach to regulation that fosters, rather than stifles, innovation.
As AI continues to evolve, the future of global digital transformation may well be shaped by how Europe navigates the challenges of regulation, competitiveness, and international cooperation. With the RAID 2024 discussion, it’s clear that the coming years will be pivotal in defining whether Europe’s governance model can inspire a new era of global standards in AI and digital policy.
