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Europe does not need to reproduce every major artificial intelligence model to compete technologically, Andreas Kugi says. Its stronger path lies in turning existing scientific and technological advantages into industrial leadership.

Kugi, scientific director of the Austrian Institute of Technology, points to Europe’s expertise in complex machines and the interaction of sensors, actuators and automation. He says those capabilities need to connect with the new possibilities created by AI. Europe also holds strong positions in parts of the semiconductor value chain. ASML leads globally in machines used to produce semiconductors, while Zeiss supplies the semiconductor industry with optical technologies.

He rejects the idea that the European Union, with 450 million people, can do everything itself. Instead, he argues that Europe should expand selected fields where it already has a strong base.

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Europe has no knowledge problem.

Kugi describes the current changes in AI as disruptive, comparing them with the introduction of electricity. He says the impact will reach far beyond the text-based systems most often discussed in the media. Agentic systems could automate large parts of engineering workflows and substantially alter how work is organized.

He also sees an opportunity when AI becomes part of a machine. That integration, he says, could give European companies room to succeed. The comments came ahead of the Technology Talks Austria in Vienna, whose theme this year is how the European Union can compete internationally. Kugi also notes that growing military research spending draws on findings from civilian technology.

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What we are seeing now is truly disruptive change.