The european commission’s joint research centre has released the Generative Artificial Intelligence Outlook Report, detailing how generative artificial intelligence is transforming daily life, public administration, industrial ecosystems, healthcare, education and science. The report is intended to give policymakers a clearer view of the risks and opportunities of this technology and to guide regulation and investment. While generative artificial intelligence is seen as a driver of innovation and efficiency, it also raises questions about social impacts, labour shifts and the need for robust governance frameworks.
In the global race, the report notes that the competitive landscape of generative artificial intelligence is dominated by the USA and China. The EU ranks third, contributing 7% of global generative Artificial Intelligence activities compared to China’s 60% and the USA’s 12%. Europe is second globally in generative Artificial Intelligence research publications, producing 21% of papers worldwide, more than 3,000 in 2023. However, EU patent filings represent only 2% of the global amount, and european generative Artificial Intelligence startups are struggling to access venture capital, creating a significant funding gap compared to the US. These figures underscore that europe’s scientific strength is not yet matched by commercialisation and investment.
The sectoral analysis highlights substantial productivity potential, especially in high skill professions. In healthcare, generative Artificial Intelligence can support personalised medicine, prevention and early diagnosis, and synthesise fragmented medical records, and the EU accounts for almost 10% of total generative Artificial Intelligence research, innovation and business activity in this domain. In education, generative Artificial Intelligence can help teachers customise learning materials and experiences, but the report stresses the need for appropriate policies and competencies to integrate these tools responsibly. Manufacturing is seeing new business models, including “agentic” Artificial Intelligence systems that autonomously manage production tasks, automate processes, optimise supply chains and reduce waste, thereby improving efficiency.
Labour market dynamics are changing as generative Artificial Intelligence affects doctors, teachers, engineers and other high skill roles more than earlier waves of technology. For example, a JRC study found that teachers were more exposed to Artificial Intelligence than 90% of other occupations. Demand is rising for transversal skills such as critical thinking, emotional intelligence and digital capabilities for developing and maintaining Artificial Intelligence systems. At the same time, the report warns that impacts are uneven across social groups. Generative Artificial Intelligence can support children, including those with disabilities or language barriers, by personalising learning and enhancing communication, but it also heightens risks of manipulation, privacy breaches and exposure to false information when cognitive capacities are still developing.
The report flags evidence of bias and inequality embedded in current systems. A JRC experiment found gender bias in Artificial Intelligence models used for financial decision making, with a gap of around 4% in favour of men, mirroring other studies on banking risk assessment tools. Women may also be disadvantaged in recruitment processes where Artificial Intelligence algorithms have been observed to favour male candidates over equally qualified women. To respond, the authors call for policies that put transparency, accountability, diversity, fairness and equality at the centre of generative Artificial Intelligence development. Proposed strategies include diversifying and improving interoperability of datasets, regular audits and monitoring, and increasing diversity among Artificial Intelligence developers, alongside education and training to build critical thinking and media literacy to counter disinformation.
The outlook is framed within broader EU policy initiatives. In 2025, the commission published the AI Continent Action Plan, with the objective of becoming a global leader in Artificial Intelligence while safeguarding EU values. This was followed by the Apply Artificial Intelligence Strategy, which sets out how the EU will accelerate Artificial Intelligence adoption and drive innovation “made in europe” in both industry and the public sector, including healthcare. The strategy serves as an overarching framework that links to other efforts, such as the european Artificial Intelligence in science strategy, reflecting a coordinated attempt to shape the future of Artificial Intelligence in line with european priorities on competitiveness, innovation and fundamental rights.
