Christine Lagarde
Speaking at a press conference in Frankfurt after the ECB kept interest rates unchanged, Lagarde noted that AI spending is part of a broader shift to domestic economic dynamics in the region.
“Some of the effects are already there, but it will take time to unlock the full potential. An investment boom in AI will not immediately boost productivity,” the ECB chief said.
Christine Lagarde emphasized that investment is a key driver of growth in the eurozone.
“While net exports and their contribution to growth are declining, the domestic market is showing a strong response,” she said. – Consumption is improving a bit, but only marginally. However, investment is the main story,” she noted.
In addition, the ECB chief pointed to AI as a significant driver of private investment growth, especially in information and communications technology. She explained that AI is driving spending in several categories.
“It’s not just AI itself, it’s also the infrastructure that goes with it – building data centers that are in development and going through the licensing and authorization process, it’s software, it’s hardware. It’s a lot of investments that are coming out of that particular segment,” Lagarde said.
