Artificial intelligence: a pioneer evokes the scenario that could cause a financial "crash"

European tech and digital policy is increasingly shaped by the immense investment flowing into artificial intelligence. While AI promises transformative capabilities, a prominent figure in the field has raised concerns about a potential financial “crash” if the technology fails to deliver on its lofty expectations. This underscores a critical juncture for AI development and its integration into the European economy, highlighting the need for realistic projections and robust oversight. The core of the concern lies in the discrepancy between AI’s potential and its current, tangible outcomes. Venture capital is pouring into AI startups at an unprecedented rate, fueling innovation but also potentially creating an unsustainable bubble if breakthrough applications do not materialize as quickly as anticipated. This speculative environment could lead to significant financial retrenchment if market expectations are not met, impacting not only the AI sector but broader financial markets. This potential financial shock could have wide-ranging implications for Europe's digital sovereignty and its competitive standing. A significant downturn could stifle innovation, hinder the growth of European AI companies, and potentially increase reliance on non-European entities. As the EU champions initiatives like the AI Act to foster trustworthy AI, managing investment risks and ensuring genuine technological progress is paramount to achieving its digital ambitions and maintaining a strong, independent European tech ecosystem.