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Honorable members The 2nd tipping point of our times. Artificial intelligence.

AI is fast becoming a foundational layer for our economy and security. Europe's stance is clear.

We want to make the most of artificial intelligence to improve our societies, our quality of life and our productivity.

I'm an optimist that AI has the potential to benefit humanity if we get it right.

But, as with any powerful new technology, AI comes with the balance of possibilities on the one hand,

but also massive risks on the other hand.

Without addressing these risks, we will never be able to unlock AI's potential.

As the frontier models become more capable,

these risks have become sharper and come sharper into focus.

Models being developed will allow hacking on a level we never thought possible.

They will soon be in the hands of adversaries who see the world very differently than us.

At the same time The dangers of self improving models are becoming ever more apparent. Incidents of AI agents escaping the environment. Or inserting malicious code, a mere glimpse.

After the hugging face incidents, developers are ringing the alarm.

CEOs of the most advanced companies tell us that it is time to slow down on the self recursive models,

to pace the frontier.

If the people developing the technology are clear. Then we should be too.

The AI Act is of course a crucial piece. To put in place guard rails.

It puts Europe in a position to shape global efforts on how to tackle this.

So we will step up together with our like-minded partners like Canada, the UK and others.

We want to team up on model evaluation. Verification, early warning. AI security and much more.

I will invite the main frontier labs for a discussion on how we can support ongoing industry efforts to pace the frontier. Members, it is also true.

Europe will need its own capabilities, in particular to protect our national security. We need to stay in the race. Because this is crucial for our independence.

So we need to massively boost our computing capacity.

We will set out our ideas for how to achieve this in a clean and efficient way.

We will also develop new ways to use public and private funds to invest in the most promising European startups and companies.

Honourable Members By limiting the risks of AI,

we can maximize the benefits.

We have already done a lot on gigafactories and tax sovereignty, for example,

but the next leg of this race is not only about frontier models.

Just as with the printing press in times gone by, it was invented by a German inventor.

But it was mastered and applied across Western Europe,

so we do not need to develop the frontier technology to be the ones who draw the greatest value from it. The key is Creating the value. AI has not yet delivered. So moving AI from the screen.

To the real economy and the real society, on the factory floor, on the hospital ward, in precision agriculture,

in our energy grids, smart grids, for autonomous driving, for defense, this is where the real value is hidden. It is where Europe has big advantages.

We have world class industries that sit on the highest quality data. These data are precious European treasure.

They are what can power tailor made industrial AI models. Let me give you one societal example.

On breast cancer screening, an issue many of you have campaigned tirelessly on.

Mammography screening reduces mortality by around 30 to 40% among women who attend. Early detection is of the essence. This is where AI can step in.

AI supported mammography can identify earlier and more cancers during screening.

As a result, more women can survive, so we need AI for health.

But here again We must do it in a European way.

Do I want my doctor to have instant AI access to all the data needed to make the best diagnostic treatment and choice? Yes, of course.

But do I want my doctor to be a robot, AI assisted? No, of course not.

I do not want a robot to tell me whether I have cancer or not.

The point is AI needs to empower our doctors, not to replace them. This is just one example.

We are now focusing on 5 of the highest value sectors where industrial AI has the biggest potential,

and we have the data in Europe health, transport,

agrifood, advanced manufacturing, and defense and space.

In November, we will announce game changing initiatives across these sectors.

We will invite Member States, Members of the European Parliament,

industry and entrepreneurs to join us in this ambitious European project. Our approach is clear.

We want artificial intelligence, we want AI to create more value,

more responsibility and at a lower cost and with less energy consumption,

but above all, we want AI with human agency.

This is the essence of the European way.