Charles Esther
At the Saudi-US Investment Forum held in Riyadh, Alex Karp, the CEO of Palantir Technologies, made headlines for his bold statements about global AI progress.
He praised Saudi Arabia’s engineering community for its strong belief in meritocracy and national growth.
Karp highlighted the Kingdom’s dedication to technological advancement, saying that the region benefits from a deep-rooted engineering tradition and a strong vision for the future.
According to Karp, “You’re seeing a receptivity in this region, especially in the kingdom. But the receptivity is on the back of people who have a deep tradition in engineering excellence and, quite frankly, believe in their own future.”
Criticism of Europe’s AI Efforts
While applauding the Middle East, Karp sharply criticised Europe for its slow adoption of artificial intelligence.
In response to a prompt by CNBC anchor Sara Eisen, he claimed that the regions excelling in AI are the United States and the Middle East.
He added, “Obviously, the great contradistinction here is Europe, where, you know, it’s like people have given up, and we — I really hope that turns around in Europe.”
Europe’s AI Lag According to McKinsey Report
Karp’s comments align with findings from a report released in October 2024 by QuantumBlack, AI by McKinsey.
The report revealed that European organizations lag behind their US counterparts by 45 to 70% in terms of AI adoption.
Although Europe leads in manufacturing AI semiconductor equipment, it holds less than 5% market share in critical areas like raw materials, cloud infrastructure, and supercomputing.
QuantumBlack noted, “Opportunity remains wide open, but Europe is starting from a disadvantage.”
Strict Regulations Hindering European AI Development
Europe’s cautious approach is also evident in its regulatory framework.
The European Union introduced the AI Act on August 1, 2024 — the world’s first legal structure for AI use.
This law bans high-risk AI applications like real-time remote biometric identification in public spaces, AI-based manipulation, and predictive policing.
Additionally, practices like robot-assisted surgery and credit scoring are classified as high-risk and face strict compliance measures.
European AI Startups Show Promise Despite Challenges
Despite regulatory hurdles, some European AI startups are gaining traction.
The most notable is Mistral, a French AI firm backed by over €1 billion in funding.
Touted as Europe’s answer to OpenAI, Mistral recently ruled out acquisition and is planning for an IPO.
The company is also expanding the reach of its open-source AI models and generative chatbot “Le Chat” into new markets.
Conclusion
Alex Karp’s remarks spotlight the global divide in AI innovation.
While the Middle East and the US charge ahead, Europe’s future in AI may hinge on balancing innovation with regulation.
If Europe wants to compete on the global stage, experts suggest it must move faster while finding ways to remain ethically aligned.
