The impact of artificial intelligence (AI) on economic competitiveness will shape opportunities for everyone – from individuals to companies, communities, and countries – and Europe stands at a pivotal moment. The continent is stepping up its investments in AI, reflecting a growing ambition to strengthen its digital capabilities. Yet it still lags behind global leaders in terms of technological competitiveness. Closing this gap requires accelerating the spread of AI across the entire economy, not just within the tech sector, but across all industries – from manufacturing and energy to healthcare, mobility, and the creative economy – and public services. AI transformation is no longer a frontier issue; it is a core engine of productivity and resilience. However, Europe’s AI adoption remains slow and fragmented. Unlocking its full potential depends on enabling widespread diffusion. Clear, predictable regulation is essential: businesses need innovation-friendly frameworks that safeguard fundamental rights without stifling progress. Europe must also remain open to the world. Building partnerships and attracting talent, capital, and ideas – while shaping global standards in line with European values – is key. Skills must also be at the heart of it. Meeting the EU’s 2030 Digital Decade targets demands a massive upskilling effort, especially in AI literacy. Without this, the promise of the AI economy will remain just out of reach.