Polycrisis, Defense Spending, USA-China and Artificial Intelligencein the Background (Book Chapter)

In this book chapter of the collective publication “The World in 2035”, the future of Artificial Intelligence within the broader context of a “polycrisis” is discussed. In a period where overlapping shocks interact and amplify one another, Europe’s competitiveness and productivity challenges in the context of AI become even more pressing. ,

The chapter maps six key challenges and two major opportunities that may shape AI over the next decade, including the possibility of a productivity (Solow) paradox, the prospect and risks of AGI, labour-market polarization and inequality, EU’s structural constraints in the AI race (with investment trends), the rise of techno-authoritarianism and the risk of regional fragmentation into competing tech blocs -alongside opportunities for a reboot of industrial policy and AI’s potential contribution to climate mitigation and risk forecasting.

Reference: Papagiannis, C. (2025). Polycrisis, defense expenditures, the U.S.–China rivalry and artificial intelligence. In P. Ioannidis (Ed.), The World in 2035 (pp. 181–193). Pedio Editions.