Vivatech 2025: Trade Uncertainty, Tech Sovereignty, and AI Integration in Europe

Trade Uncertainty's Impact on Tech

• 📉 Capital flow globally has seen a significant hit, with approximately 50% of companies slowing capital investments and 20% canceling them entirely.
• ⚙️ About 40% of surveyed companies have shifted operational assets, indicating a need for new rules and agility in the tech sector.
• 💡 Access to capital is changing, requiring companies to adapt to new dynamics compared to a year or two ago.

Europe's Quest for Tech Sovereignty

• 🇪🇺 While full tech sovereignty may be challenging, there's a strong demand for a more independent European tech ecosystem.
• ☁️ The European cloud environment is largely dominated by US tech giants (Microsoft, Amazon, Google), highlighting a need for stronger European providers.
• 🌱 Europe has advantages like access to energy and a large population that can be capitalized on to drive tech sovereignty.
• ⚖️ Efforts are underway to ease regulatory burdens and red tape, though changes to the business and regulatory environment take time.

Navigating Regulatory and Innovation Challenges

• 🛠️ Addressing regulatory hurdles, access to capital, and fostering a culture where startup failure is accepted are crucial for embedding progress.
• 📈 Demonstrating progress in these areas is expected to increase appetite for both foreign direct and local investments in the European market.

EY's Approach to AI Integration

• 🚀 EY views itself as "client zero," embedding artificial intelligence across its global operations to gain practical experience.
• 🤝 The firm leverages sector insights from one company to advise others, acting as a bridge for AI integration.
• 🌐 EY also works with regulators to navigate the evolving and often unknown risk and regulatory landscape of AI.
• 💡 A shift from use-case specific AI implementation to integrating AI into core operating models is observed, though talent and regulatory readiness remain challenges.
• ⚡ Agility in decision-making, capital deployment, and hiring is critical for businesses to keep pace with AI evolution and prepare for future technologies.