ARTIFICIAL INTELLIGENCE IN THE EUROPEAN ECONOMY: A CRITICAL ANALYSIS

Abstract

Artificial Intelligence (AI) is transforming the European economic landscape, driving innovation, productivity, and structural change across numerous sectors. The present study analyzes the use of AI in the economic systems of the European Union and its key member states, such as the United Kingdom, Germany, France, Italy, and Spain. It addresses national AI plans, regulation, state-private investments, and sectoral trends in take-up. The EU risk-based AI Act and innovation programs such as InvestAI reflect its move towards reconciling ethical regulation with economic growth. For Germany and the UK, they target productivity through AI and industrial automation, but France and Spain are heavily investing in infrastructure and AI start-ups to stay competitive on the global scene. Yet issues of regional disparities, skills shortages, and uneven SME uptake continue to threaten inclusive development. Applying Regional Complex Theory (RCT), the analysis understands AI as an integrated but unevenly distributed power within the European economic complex. The article concludes that although AI possesses overwhelming economic potential, coordinated policy action, skill development, and infrastructure investment are essential to ensure balanced European regional integration and growth.

Keywords: Artificial Intelligence, European Economy, Regional Complex Theory, AI Governance, Digital Transformation, Economic Disparities, AI Investment, Public-Private Partnership, AI Regulation, SME Innovation.