PRODUCTIVITY, INNOVATION AND THE USE OF AI – INSIGHTS FROM ARC 2025

D. Pinelli

Quarterly Report on the Euro Area (QREA), 2026, vol. 25, issue 1, 35-43

Abstract: This chapter summarises the key takeaways from the Annual Research Conference 2025 (ARC 2025), on productivity, innovation, and the use of AI organised jointly by DG ECFIN and the JRC of the European Commission. It first examines EU’s position relative to other global players in terms of AI innovation and adoption. It then discusses AI's impact on productivity, stemming both from the automation of tasks in production and from its potential for automating innovation, which would shift growth trend permanently. It then analyses the potential implications of AI for the green transition and for the labour market. Finally, it summarises the policy-relevant elements of the discussion, including the need for strong competition policy and competition-friendly industrial policy, the fragmentation of incentives for research and innovation in the EU, and the importance of education and labour market safeguards.

Keywords: artificial intelligence; productivity; digitalisation; skills (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:euf:qreuro:0251-03

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