The glittering world of technology converged in Lisbon recently for the sprawling Web Summit conference, where dancing robots and the influencer economy shared space with a dominant new buzzword: agentic AI. Yet beneath the surface of this innovation showcase, a critical debate simmers – is Europe becoming too cautious about artificial intelligence, potentially jeopardising its economic future?
The Rise of Agentic AI
Inside the vast, warehouse-sized pavilions of the Web Summit, the phrase 'agentic AI' was inescapable. This technology represents artificial intelligence that can perform specific tasks autonomously, such as booking flights, ordering transport, or assisting customers. The concept has even permeated popular culture, with the Daily Mail recently listing 'agentic' as an 'in' term for Generation Z.
Despite its current trendiness, the technology behind AI agents isn't new. Babak Hodjat, now Chief AI Officer at Cognizant, actually invented the natural language technology powering one of the most famous AI agents – Siri – back in the 1990s. "Back then, the fact that Siri itself was multi-agentic was a detail that we didn't even talk about - but it was," Mr Hodjat revealed to Sky News from the Lisbon event.
Magnified Risks and European Wariness
While not novel, AI agents are believed to present greater risks than general-purpose AI because they actively interact with and modify real-world scenarios. The IBM Responsible Technology Board highlighted this concern in their 2025 report, noting that agentic AI introduces new challenges like data bias, where an AI agent might alter a database in ways that introduce prejudice, with potentially irreversible consequences if scaled undetected.
However, for Mr Hodjat, the primary concern isn't the agents themselves but human behaviour. He warns that people are "over-trusting" AI systems, accepting their responses at face value without verifying their accuracy or checking for hallucinations. "It is incumbent upon all of us to learn what the boundaries are," he emphasised, stressing the importance of education for both current generations and children.
The Regulatory Divide and Economic Consequences
This caution resonates particularly in Europe, where wariness around AI significantly exceeds that in the United States. This year marked the implementation of the EU AI Act, establishing strict regulations governing how companies can utilise artificial intelligence. Meanwhile, in the UK, companies navigate existing legislation like GDPR amid uncertainty about future regulatory strictness.
Jarek Kutylowski, founder and CEO of German AI translation giant DeepL, believes Europe's precautionary approach has gone too far. When questioned about whether slowing AI innovation for stricter regulations was necessary, he acknowledged the question's importance but argued that Europe is overcorrecting.
"Looking at the apparent risks is easy," Mr Kutylowski stated. "Looking at the risks like what are we going to miss out on if we don't have the technology, if we are not successful enough in adopting that technology, that is probably the bigger risk." He expressed particular concern about Europe being "left behind in the AI race", warning that the economic consequences might not be apparent until other regions begin capitalising on productivity gains that Europe misses. His perspective presents a crucial dilemma: how can societies pragmatically embrace technological progress while responsibly managing its risks?
