Brussels, ARC 2025: AI and Innovation take center stage at the European Commission's Annual Research Conference.
International experts, economists, and academics analyzed the impact of Artificial Intelligence on productivity, innovation, the labor market, and European economic policies in Brussels today.
Brussels, ARC 2025: AI and Innovation take center stage at the European Commission's Annual Research Conference.
The Annual Research Conference (ARC 2025) was held today in Brussels , with the aim of presenting the European Commission with the latest academic findings and strengthening the dialogue between research and policymaking . The event, co-organized by the Directorate-General for Economic and Financial Affairs (DG ECFIN) and the Joint Research Centre (JRC) , focused on the theme " AI and Innovation: Productivity, Growth and Future Economic Policies ." This year's edition explored how Artificial Intelligence and new technologies are already reshaping European productivity , impacting businesses, the labor market, and the EU's ability to remain globally competitive.
Opening with Philippe Aghion, Nobel Prize in Economics 2025
The conference opened with a speech by Philippe Aghion , winner of the 2025 Nobel Prize in Economics, who provided an overview of the transformations brought about by AI as a general-purpose technology , highlighting its potential impact on Europe's growth dynamics and technological progress.
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The value of data and the challenges of regulation
One of the key moments was the policy panel dedicated to the role of data as a key production factor in the development of AI-based services. Featuring contributions from Jeromin Zettelmeyer (Bruegel), Beata Javorcik (EBRD), Maximilian Freier (ECB), and Ashley Feldman (Wayve), the discussion highlighted how the non-rivalrous nature of data allows for multiple uses by different actors, generating widespread economic value. However, the rapid expansion of digital data in recent years has led to heterogeneous regulations across European jurisdictions. Experts analyzed the economic impacts of these differences and the need for rules that foster efficient and harmonized data use.
Innovation, AI ecosystems and EU needs
Another key session explored the role of innovation policies , a field that has expanded in the EU to include more directional and regulatory aspects . Academics such as Irene Bertschek , Max Schaefer , Rosa Ferrer , and Reinhilde Veugelers discussed Europe's lag in AI adoption and its consequences for achieving innovation goals . The debate underscored the need to strengthen AI innovation ecosystems , foster the upscaling of technologies, and ensure their diffusion even in more traditional sectors, while ensuring consistency with the Union's social and environmental objectives.
Productivity and Applications of Artificial Intelligence
The third session focused on concrete evidence regarding the productivity gains resulting from the adoption of AI. With presentations by Flavio Calvino (OECD), Dirk Czarnitzki (KU Leuven), Fabrizio Dell'Acqua (Harvard Business School), and Cecilia Jona Lasinio (LUISS Business School), the effects of AI on large enterprises , SMEs , cutting-edge companies, and technologically lagging companies were analyzed . The experts also highlighted how the growth of AI depends on the availability of digital skills , advanced software, big data , and next-generation IT hardware.
Labour Market, Algorithmic Management and the European Social Model
Another session explored the interaction between digital technologies and the European labor market . The focus was on the role of digital monitoring , algorithmic management , and the impact of digital transformation on traditional employment structures. With presentations by Andrew Watt (ETUI), Uma Rani (ILO), Laura Nurski (CEPS), and Alessandra Bonfiglioli (University of Bergamo), the discussion addressed crucial issues such as inequality, worker protections, platform work, and the necessary balance between flexibility and security.
Final Panel: Productivity, Competitiveness, and Future Policies
The final panel brought together researchers and institutional representatives to link the findings of the work to the design of future European economic policies . Zettelmeyer , Javorcik , Freier , and Feldman were present , moderated by Géraldine Mahieu (DG ECFIN). The debate reiterated the EU's challenges in terms of productivity , innovation , and technology diffusion, underscoring the urgency of policies capable of supporting sustainable and competitive growth in the long term.
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