The EU is heavily investing in technologies like generative AI, blockchain, and the metaverse, raising concerns about the soundness of these investments amid doubts about their profitability. Despite pressures to keep up with US trends, experts suggest a more cautious approach that evaluates technologies’ real-world applications and their potential economic impacts before committing significant funds.
The EU continues to invest heavily in emerging technologies like generative AI, blockchain, and the metaverse, questioning whether these expenditures are sound decisions or merely reactions to trends popularized by US firms. Recently, the low-cost AI tool DeepSeek created a stir by producing quality models on a limited budget, raising concerns about the effectiveness of US investments in AI. Critics likened OpenAI’s situation to that of WeWork, underscoring skepticism about the sustainability of such ventures.
EU leaders, however, announced ambitious funding for AI development, with French President Macron highlighting a €109 billion initiative primarily funded by private investment from the Emirates to support data centers. European Commission President Ursula von der Leyen outlined a more extensive €200 billion plan, proposing gigafactories dedicated to AI chips, reflecting Europe’s commitment despite existing doubts about AI’s profitability.
Concerns regarding the practical benefits of generative AI have intensified, with calls into question the genuine transformative potential of technologies like ChatGPT. Despite claims of revolutionary capabilities, many in the industry, including Goldman Sachs, indicate that no significantly transformative applications have emerged since generative AI became mainstream. As of now, the AI sector is witnessing limited real-world applications that drive profitability.
Some experts caution that investing blindly in generative AI could sideline promising AI technologies with more practical applications. The EU’s GenAI4EU initiative, budgeted at €500 million, is primarily focused on generative AI without adequately exploring alternatives that could yield fewer issues, such as reliability and hallucination problems, potentially leading to better technological solutions.
The EU’s pattern of following US tech hype cycles isn’t new. The example of virtual reality illustrates how initial excitement can fade when the technology fails to reach widespread adoption. While some niche applications for VR exist, grand visions like the metaverse proposed by Meta have not materialized into tangible outcomes, exemplifying the gap between expectation and reality.
Fluctuations in blockchain interest further exhibit the risks of overinvestment in trendy technologies. The technology garnered major attention in 2017 but has since been viewed as rife with scams rather than providing valid solutions. Despite its now-diminished status, the EU allocated €700 million from Horizon 2020 and Horizon Europe toward blockchain projects amid the initial hype, highlighting its tendency to spend on fleeting technological fads.
Rather than succumbing to fears of being overshadowed by the US, Europe could benefit from developing a more thoughtful approach to technology investment. A policy informed by critical analysis would better assess the viability and necessity of new technologies before committing substantial funding—ensuring that future investments are more likely to yield genuine economic benefits rather than chasing down technology fads.
Original Source: sciencebusiness.net
