CFTC Commissioner: Crypto Exchanges And Businesses Must Create A Self-Regulatory …

… CFTC commissioner, Brian Quintenz stated that since the CFTC is yet to implement robust guidelines for the U.S distributed ledger technology (DLT) …
Cryptocurrency-Exchanges-and-Related-Businesses-Must-Create-a-Self-Regulatory-Organization-Says-CFTC-Commissioner

Cryptocurrency Exchanges And Related Businesses Must Create A Self-Regulatory Organization – Says CFTC Commissioner

While the United States regulators are still trying to come up with amenable guidelines to govern the crypto industry, the United States Commodity and Futures Trading Commission (CFTC) commissioner, Brian Quintenz has reportedly urged firms and stakeholders in the cryptospace to establish a self-regulatory body that would govern digital assets market participants, according to reports on February 18, 2019.

Cryptocurrency Self-Regulatory Structure necessary

Present at the Bipartisan Policy Center panel organized on February 12, 2019, CFTC commissioner, Brian Quintenz stated that since the CFTC is yet to implement robust guidelines for the U.S distributed ledger technology (DLT) and virtual currency industry, it has become essential for crypto-focused organizations to come together and form a self-regulatory organization.

According to the official, the primary objective of the self-regulatory organization would be to “discuss, agree to, implement, examine or audit,” the crypto ecosystem.

In other words, Quintenz has pointed out that some of the duties of the self-regulatory body would be to guard against malpractices in the cryptocurrency industry, including insider trading while also carrying out audits concerning conflicts of interest, custody, liquidity and more.

Self-Regulatory Organizations Are Constitutional

More importantly, the CFTC commissioner also reportedly made it clear that “a self-regulatory platform is specifically chartered by the U.S. Congress through the law,” although the body will only function as a mutual association by private market participants in the crypto industry.

In the same vein, the U.S. Securities and Exchange Commission (SEC) commissioner, Hester Peirce who was also a member of the panel, reportedly noted that the current regulatory state of the crypto assets space remains quite “confusing.”

At a time when the Bitcoin Exchange Traded Fund (ETF) filing of a significant number of highly reputed firms in the cryptosphere, including VanEck SolidX have been rejected by the regulators citing the seemingly unregulated nature of the industry, Pierce has condemned the decision of the SEC.

In her words:

“There are numerous markets that are not regulated, yet we build derivative products upon them.”

It’s worth noting that this is not the first time that Peirce is showing strong support for bitcoin and other blockchain-based digital assets.

As reported by Bitcoin Exchange Guide in August 2018, the Commissioner urged the U.S regulators to soften their stance as regards cryptocurrency regulation.

“Apparently, bitcoin is not ripe enough, respectable enough, or regulated enough to be worthy of our markets. I dissent,” tweeted Peirce earlier in July 2018.

In related news, on February 13, 2019, Bitcoin Exchange Guideinformed that Peirce had made it clear that the outdated rules of the SEC could make the launch a Bitcoin ETF impossible this year.

Bitcoin (BTC), Ethereum (ETH), XRP (Ripple), and BCH Price Analysis Watch (Feb 18th)

US friends break ranks on Huawei lockout

SoftBank Corp., SoftBank Group‘s mobile arm, intends to replace Huawei equipment in its existing 4G network in response to Japanese and U.S. …

GUANGZHOU/LONDON — Cracks are emerging in the American-led efforts to ban products by China’s Huawei Technologies in 5G networks, with the U.K. concluding that the risks are manageable and New Zealand planning to evaluate the matter independently from the U.S.

As tensions with China rise over trade and national security, the U.S. alleges that Huawei equipment could be used by Beijing to spy on other countries. But Huawei rejects these accusations, and even traditional U.S. allies are starting to question whether a complete ban is truly necessary.

The U.K. National Cyber Security Center determined that the risks of using Huawei equipment in future high-speed communications networks can be mitigated, The Financial Times reported Sunday. A source told the outlet that the British probably will recommend an approach using multiple suppliers and partial restrictions.

As a member of Five Eyes — an intelligence-sharing pact with the U.S., Canada, Australia and New Zealand — the U.K. could influence other countries’ policies and throw a wrench into the U.S. campaign against Huawei.

The details of the NCSC’s conclusions remain under wraps. A British oversight board dedicated to Huawei has previously acknowledged certain risks, identifying weaknesses in the company’s products in an annual report last year. It “can provide only limited assurance that all risks to U.K. national security from Huawei’s involvement in the U.K.’s critical networks have been sufficiently mitigated,” the report said.

Still, “the U.K. may have been concerned that shutting Huawei out completely could delay its plans to roll out 5G,” said Keio University professor Tatsuya Kurosaka, an expert on the communications industry.

A ban on Huawei equipment would have “significant implications” for European telecommunications companies, including higher costs and “significant delay” to 5G rollouts, Vodafone Group CEO Nick Read told reporters in January.

New Zealand also appears to be breaking ranks. “It is fair to say Five Eyes, of course, share information, but we make our own independent decisions,” Prime Minister Jacinda Ardern said Monday, signaling that Wellington will evaluate the risks tied to Huawei separately from Washington.

This represents a possible shift for the country. In November, it rejected a proposal by a telecom to use Huawei 5G equipment, even while stressing the decision was not aimed at any company in particular.

The U.S. is doubling down against Huawei. Vice President Mike Pence, a China hawk, warned against the “threat” posed by the company at the Munich Security Conference on Saturday. Secretary of State Mike Pompeo also urged Eastern European countries to cooperate with the U.S. But Slovakia, for one, does not consider the Chinese company a threat.

Meanwhile, Japan plans to essentially bar Huawei products, citing security risks. SoftBank Corp., SoftBank Group’s mobile arm, intends to replace Huawei equipment in its existing 4G network in response to Japanese and U.S. government requests. It has not changed its stance that it will make a decision comprehensively, even after the U.K. cybersecurity agency’s analysis was reported.

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Victory Capital Management Has Lifted By $739440 Its Jones Lang Lasalle (JLL) Holding …

… and accessories; 04/04/2018 – Brian Friedman, President of Leucadia National Corporation, and Bonnie Howard, Former Chief Auditor of Citigroup, …

Citigroup Inc. (NYSE:C) Logo

Pinnacle Holdings Llc increased Citigroup (C) stake by 3.45% reported in 2018Q3 SEC filing. Pinnacle Holdings Llc acquired 650 shares as Citigroup (C)’s stock declined 18.04%. The Pinnacle Holdings Llc holds 19,469 shares with $1.40 billion value, up from 18,819 last quarter. Citigroup now has $152.22 billion valuation. The stock increased 2.96% or $1.85 during the last trading session, reaching $64.27. About 17.91 million shares traded. Citigroup Inc. (NYSE:C) has declined 23.89% since February 18, 2018 and is downtrending. It has underperformed by 23.89% the S&P500. Some Historical C News: 10/04/2018 – Last month, Citigroup said it would bar companies with which it does business from selling guns to people under 21 years old and ban clients from selling high-capacity magazines and accessories; 04/04/2018 – Brian Friedman, President of Leucadia National Corporation, and Bonnie Howard, Former Chief Auditor of Citigroup, appointed to leadership positions on the Board of Directors of STRIVE International; 20/03/2018 – GRAFTECH INTERNATIONAL LTD SAYS J.P. MORGAN, CREDIT SUISSE, CITIGROUP ARE AMONG UNDERWRITERS TO IPO; 22/03/2018 – CITIGROUP – NEW U.S. COMMERCIAL FIREARMS POLICY “PROMOTES THE ADOPTION OF CURRENT BEST PRACTICES REGARDING THE SALE OF FIREARMS”; 14/05/2018 – U.S. Silica Presenting at Citigroup Conference Tomorrow; 29/03/2018 – REPSOL REP.MC : CITIGROUP RAISES TARGET PRICE TO 16.40 EUROS FROM 14.70 EUROS; 07/05/2018 – VF CORP VFC.N : CITIGROUP RAISES TARGET PRICE TO $80 FROM $79; 13/04/2018 – Citigroup 1Q EPS $1.68; 08/05/2018 – APTIV PLC APTV.N : CITIGROUP RAISES TARGET PRICE TO $112 FROM $110; 16/05/2018 – CITIGROUP INC FILES PROSPECTUS SUPPLEMENT RELATED TO OFFERING OF $1 BLN FLOATING RATE NOTES DUE 2024 – SEC FILING

Victory Capital Management Inc increased Jones Lang Lasalle Inc (JLL) stake by 26.45% reported in 2018Q3 SEC filing. Victory Capital Management Inc acquired 5,135 shares as Jones Lang Lasalle Inc (JLL)’s stock declined 10.08%. The Victory Capital Management Inc holds 24,552 shares with $3.54 million value, up from 19,417 last quarter. Jones Lang Lasalle Inc now has $7.52 billion valuation. The stock increased 0.27% or $0.44 during the last trading session, reaching $164.96. About 394,638 shares traded or 30.59% up from the average. Jones Lang LaSalle Incorporated (NYSE:JLL) has declined 14.80% since February 18, 2018 and is downtrending. It has underperformed by 14.80% the S&P500. Some Historical JLL News: 08/05/2018 – LaSalle Solutions renews Cisco TelePresence Video Master Authorization in US; 08/05/2018 – Jones Lang Lasalle Raises Dividend to 41c; 17/05/2018 – JONES LANG LASALLE INC – NEW FIVE-YEAR TERM EXTENDS MATURITY TO MAY 2023 FROM JUNE 2021; 05/03/2018 JONES LANG LASALLE INC JLL.N : BARCLAYS RAISES TARGET PRICE TO $175 FROM $170; 21/05/2018 – LASALLE PREVIOUSLY RECEIVED THREE PROPOSALS FROM PEBBLEBROOK; 08/04/2018 – Scout.com: Source: LaSalle to hire Villanova assistant Ashley Howard; 30/04/2018 – JLL arranges $305 million sale of 175 West Jackson in Chicago’s Loop; 01/05/2018 – Lasalle, Pebblebrook and Labor Negotiations? a New Report by UNITE HERE; 21/03/2018 – JLL makes Linkedln’s Top Companies list again; 15/03/2018 – S&PGR Downgrades LaSalle, IL GO Debt To ‘BBB-‘ From ‘BBB’

Among 5 analysts covering Citigroup (NYSE:C), 4 have Buy rating, 0 Sell and 1 Hold. Therefore 80% are positive. Citigroup had 6 analyst reports since September 27, 2018 according to SRatingsIntel. The stock of Citigroup Inc. (NYSE:C) has “Buy” rating given on Wednesday, December 26 by Standpoint Research. The rating was maintained by Deutsche Bank on Thursday, September 27 with “Buy”. Standpoint Research downgraded Citigroup Inc. (NYSE:C) on Wednesday, January 16 to “Hold” rating. The stock has “Outperform” rating by BMO Capital Markets on Tuesday, January 15. Credit Suisse maintained the stock with “Outperform” rating in Friday, December 7 report. Morgan Stanley maintained Citigroup Inc. (NYSE:C) on Tuesday, January 8 with “Overweight” rating.

More notable recent Citigroup Inc. (NYSE:C) news were published by: Seekingalpha.com which released: “Citigroup: Not Cheap Enough – Seeking Alpha” on January 29, 2019, also Seekingalpha.com with their article: “Just Keep Banking On Citigroup – Seeking Alpha” published on January 21, 2019, Seekingalpha.com published: “Massive trove of loan documents leaked – Techcrunch – Seeking Alpha” on January 23, 2019. More interesting news about Citigroup Inc. (NYSE:C) were released by: Benzinga.com and their article: “Citigroup Inc. (NYSE:C), C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW) – Analysts React To C.H. Robinson’s Q4 Results – Benzinga” published on January 31, 2019 as well as Seekingalpha.com‘s news article titled: “Goldman sees bank rally continuing on loan growth – Seeking Alpha” with publication date: January 22, 2019.

Investors sentiment is 1.02 in Q3 2018. Its the same as in 2018Q2. It is flat, as 52 investors sold C shares while 470 reduced holdings. only 122 funds opened positions while 410 raised stakes. 1.80 billion shares or 3.35% less from 1.86 billion shares in 2018Q2 were reported. Invesco Ltd accumulated 39.34 million shares. Asset Mgmt, a New York-based fund reported 22,856 shares. Independent Investors holds 0.36% or 14,275 shares in its portfolio. Horizon Lc accumulated 13,445 shares. 1832 Asset Lp accumulated 2.10M shares. Quinn Opportunity Ptnrs Limited Liability Co stated it has 324,000 shares. Altavista Wealth Mngmt Inc reported 3,693 shares. Wedge Capital Management L Lp Nc stated it has 0.31% in Citigroup Inc. (NYSE:C). Dana Invest Advsrs invested 0.08% of its portfolio in Citigroup Inc. (NYSE:C). Boston Private Wealth Ltd Com has invested 0.59% in Citigroup Inc. (NYSE:C). Cornerstone Investment Prns Limited Co reported 3.85% in Citigroup Inc. (NYSE:C). Palladium Prns Ltd Liability Co accumulated 0.07% or 14,786 shares. Schwerin Boyle Management holds 177,089 shares or 1.35% of its portfolio. Investec Asset Mgmt North America has invested 1.98% in Citigroup Inc. (NYSE:C). Asset Strategies has invested 0.58% in Citigroup Inc. (NYSE:C).

Pinnacle Holdings Llc decreased Genco Shipping stake by 309 shares to 26,681 valued at $373.55 million in 2018Q3. It also reduced Global Eagle Entertainment (Prn) stake by 25,000 shares and now owns 1.98M shares. Lgi Homes (NASDAQ:LGIH) was reduced too.

Victory Capital Management Inc decreased Conmed Corp (NASDAQ:CNMD) stake by 448,614 shares to 761,983 valued at $60.36 million in 2018Q3. It also reduced Sealed Air Corp New (NYSE:SEE) stake by 462,695 shares and now owns 964,322 shares. Caci Intl Inc (NYSE:CACI) was reduced too.

Since August 27, 2018, it had 0 insider purchases, and 1 insider sale for $30,988 activity. Grainger Guy sold $30,988 worth of stock.

Among 3 analysts covering Jones Lang LaSalle (NYSE:JLL), 2 have Buy rating, 1 Sell and 0 Hold. Therefore 67% are positive. Jones Lang LaSalle had 3 analyst reports since November 16, 2018 according to SRatingsIntel. The firm has “Underperform” rating given on Thursday, January 3 by Bank of America. The stock of Jones Lang LaSalle Incorporated (NYSE:JLL) has “Overweight” rating given on Friday, November 16 by Barclays Capital. Raymond James maintained Jones Lang LaSalle Incorporated (NYSE:JLL) rating on Wednesday, February 13. Raymond James has “Outperform” rating and $188 target.

Investors sentiment decreased to 0.97 in Q3 2018. Its down 0.17, from 1.14 in 2018Q2. It turned negative, as 29 investors sold JLL shares while 114 reduced holdings. 47 funds opened positions while 91 raised stakes. 40.92 million shares or 0.05% less from 40.95 million shares in 2018Q2 were reported. Moreover, Advisory Services Net Lc has 0% invested in Jones Lang LaSalle Incorporated (NYSE:JLL). Etrade Cap Management Lc holds 0.03% of its portfolio in Jones Lang LaSalle Incorporated (NYSE:JLL) for 6,851 shares. 400 are owned by Livforsakringsbolaget Skandia Omsesidigt. State Treasurer State Of Michigan accumulated 0.02% or 16,800 shares. Dupont Cap Mgmt has 6,600 shares for 0.02% of their portfolio. Germany-based Dekabank Deutsche Girozentrale has invested 0.05% in Jones Lang LaSalle Incorporated (NYSE:JLL). First Quadrant LP Ca reported 0.24% stake. Oregon Employees Retirement Fund stated it has 41,572 shares. State Of Wisconsin Board reported 105,718 shares. Blair William & Company Il accumulated 11,144 shares or 0.01% of the stock. Ubs Asset Management Americas has invested 0% in Jones Lang LaSalle Incorporated (NYSE:JLL). Voloridge Invest Mgmt Lc owns 68,986 shares. North Star Investment Management accumulated 0% or 305 shares. Moreover, Commonwealth Bank & Trust Of has 0% invested in Jones Lang LaSalle Incorporated (NYSE:JLL) for 100 shares. American Intll Gp owns 95,370 shares or 0.05% of their US portfolio.

More notable recent Jones Lang LaSalle Incorporated (NYSE:JLL) news were published by: Seekingalpha.com which released: “Jones Lang LaSalle +3.2% after Q4 blow-out – Seeking Alpha” on February 12, 2019, also Prnewswire.com with their article: “JLL Capital Markets secures $280M for developers to refinance Empire Stores – PRNewswire” published on February 14, 2019, Benzinga.com published: “Jones Lang LaSalle Incorporated (NYSE:JLL), Morgan Stanley (NYSE:MS) – Days Of Free Money Are Over For Inventory-Carrying, But It’s Not Time To Declare Armageddon – Benzinga” on January 22, 2019. More interesting news about Jones Lang LaSalle Incorporated (NYSE:JLL) were released by: Bizjournals.com and their article: “Oil field services co. moves Houston regional headquarters – Houston Business Journal” published on February 15, 2019 as well as Benzinga.com‘s news article titled: “Jones Lang LaSalle Incorporated (NYSE:JLL), Prologis (NYSE:PLD) – Prologis Injects Some Cautious Prudence Amid Strong 2018 Results – Benzinga” with publication date: January 23, 2019.

Citigroup Inc. (NYSE:C) Institutional Positions Chart

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$0.16 EPS Expected for Finisar Corporation (FNSR)

Investors sentiment decreased to 1.06 in Q3 2018. Its down 0.11, from 1.17 in 2018Q2. It is negative, as 25 investors sold Finisar Corporation shares …

Finisar Corporation (NASDAQ:FNSR) Logo
Investors sentiment decreased to 1.06 in Q3 2018. Its down 0.11, from 1.17 in 2018Q2. It is negative, as 25 investors sold Finisar Corporation shares while 57 reduced holdings. 22 funds opened positions while 65 raised stakes. 110.77 million shares or 4.19% less from 115.62 million shares in 2018Q2 were reported.

Comml Bank Of America De owns 595,494 shares or 0% of their US portfolio. Dnb Asset As accumulated 0% or 5.52 million shares. King Luther Mgmt reported 89,650 shares stake. Ameriprise Financial invested in 0% or 676,679 shares. Cibc Asset Inc stated it has 0% of its portfolio in Finisar Corporation (NASDAQ:FNSR). Teacher Retirement System Of Texas invested in 13,505 shares or 0% of the stock. Advsr Cap Ltd Liability Corporation invested in 0.23% or 181,521 shares. Highbridge Cap Mgmt Ltd Liability Corp owns 0.02% invested in Finisar Corporation (NASDAQ:FNSR) for 51,000 shares. Texas Permanent School Fund has invested 0.02% in Finisar Corporation (NASDAQ:FNSR). Voya Inv reported 1.85 million shares. Granahan Investment Mngmt Ma has invested 0.11% in Finisar Corporation (NASDAQ:FNSR). Piedmont Advsr reported 0.02% stake. Northwestern Mutual Wealth Mngmt Company has 0% invested in Finisar Corporation (NASDAQ:FNSR) for 1,899 shares. Qs Investors Limited Liability Co accumulated 110,447 shares. Ls Limited Liability Company holds 0% or 3,605 shares.

Since September 4, 2018, it had 0 insider purchases, and 5 selling transactions for $2.12 million activity. Shares for $32,367 were sold by Eng Julie Sheridan on Saturday, December 15. Another trade for 3,000 shares valued at $55,308 was sold by FERGUSON ROGER C.

Analysts expect Finisar Corporation (NASDAQ:FNSR) to report $0.16 EPS on March, 14.They anticipate $0.14 EPS change or 700.00 % from last quarter’s $0.02 EPS. FNSR’s profit would be $18.86 million giving it 36.53 P/E if the $0.16 EPS is correct. After having $0.16 EPS previously, Finisar Corporation’s analysts see 0.00 % EPS growth. The stock increased 1.65% or $0.38 during the last trading session, reaching $23.38. About 1.11M shares traded. Finisar Corporation (NASDAQ:FNSR) has risen 24.10% since February 18, 2018 and is uptrending. It has outperformed by 24.10% the S&P500.

Finisar Corporation (NASDAQ:FNSR) Ratings Coverage

Among 7 analysts covering Finisar (NASDAQ:FNSR), 1 have Buy rating, 0 Sell and 6 Hold. Therefore 14% are positive. Finisar had 8 analyst reports since August 22, 2018 according to SRatingsIntel. The rating was upgraded by PiperJaffray to “Overweight” on Thursday, August 23. The firm has “Hold” rating by Jefferies given on Thursday, December 6. The stock has “Neutral” rating by FBR Capital on Tuesday, September 4. Morgan Stanley downgraded it to “Equal-Weight” rating and $20 target in Thursday, September 13 report. The stock of Finisar Corporation (NASDAQ:FNSR) earned “Equal-Weight” rating by Morgan Stanley on Tuesday, December 4. The stock of Finisar Corporation (NASDAQ:FNSR) has “Neutral” rating given on Thursday, December 6 by M Partners. Goldman Sachs upgraded the stock to “Neutral” rating in Monday, November 12 report. The company was downgraded on Wednesday, August 22 by Raymond James.

Finisar Corporation provides optical subsystems and components for data communication and telecommunication applications in the United States, China, Malaysia, and internationally. The company has market cap of $2.76 billion. The company’s optical subsystems primarily include transmitters, receivers, transceivers, transponders, and active optical cables, which provide the fundamental optical-electrical, or optoelectronic interface for interconnecting the electronic equipment used in networks comprising switches, routers, and servers used in wireline networks, as well as antennas and base stations used in wireless networks. It currently has negative earnings. It also offers wavelength selective switches that are used to switch network traffic from one optical fiber to various other fibers without converting to an electronic signal.

More notable recent Finisar Corporation (NASDAQ:FNSR) news were published by: Seekingalpha.com which released: “Finisar disappoints, but guides to Q1 rebound – Seeking Alpha” on June 14, 2018, also Seekingalpha.com with their article: “Finisar +7.5% after Q1 beat, healthy profit guidance – Seeking Alpha” published on September 06, 2018, Nasdaq.com published: “Pre-Market Earnings Report for December 3, 2018 : FNSR, RMR – Nasdaq” on November 30, 2018. More interesting news about Finisar Corporation (NASDAQ:FNSR) were released by: Benzinga.com and their article: “Piper Jaffray Brightens On Finisar (NASDAQ:FNSR), Acacia Communications (NASDAQ:ACIA) – Benzinga” published on August 23, 2018 as well as Fool.com‘s news article titled: “II-VI Stock Upgraded: What You Need to Know – The Motley Fool” with publication date: December 31, 2018.

Finisar Corporation (NASDAQ:FNSR) Institutional Positions Chart

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Welcome the robots: bridging the European artificial intelligence gap

Digital transformation is well underway in international businesses and economies. The problem? Europe is lagging behind the industries of its global …

Digital transformation is well underway in international businesses and economies. The problem? Europe is lagging behind the industries of its global competitors.

A new study by the McKinsey Global Institute (MGI), the research arm of McKinsey & Company, has found that the continent’s “digital gap with the world’s leaders is now being compounded by an emerging gap in artificial intelligence.” It’s a game of catch-up, in other words, with technological leaders such as the US and China. “Europe needs more AI, different AI, and all of it more quickly,” the study states.

This is an issue with which Europe has been battling for years. Now, however, is the time to “double down” on its efforts to successfully undergo a digital transformation, especially as new tech such as AI becomes more ubiquitous, user-friendly, and expected.

“If Europe on average develops and diffuses AI according to its current assets and digital position relative to the world, it could add some €2.7 trillion, or 20 percent, to its combined economic output by 2030. If Europe were to catch up with the US AI frontier, a total of €3.6 trillion could be added to collective GDP in this period,” the study found. This is a staggering number, but compared with other continents or nations, it is hardly surprising. Digitisation, for example, could approximately add €210 billion to Mexico’s GDP by 2025.

Economic potential of AI to Europe’s economy

The good news is that Europe tech doesn’t necessarily have to compete with its technological superiors. Instead, the continent can home in on areas in which it has advantageous footholds within the industry, such as B2B and advanced robotics. From there, Europe could begin to scale up, eventually becoming one of the “world’s largest bases of technology developers into a more connected, Europe-wide web of AI-based innovation hubs.”

In its discussion paper, “Notes from the AI frontier: Tackling Europe’s gap in digital and AI” McKinsey reveals six major findings to better predict how AI might roll out in the continent.

Gaps on gaps on gaps

A recent study showed that nearly two-thirds of digital transformation projects fail – meaning companies worldwide are wasting billions on projects that fail to deliver what they had initially promised. Research conducted by McKinsey in 2016, meanwhile, found that European countries were capturing only 12% of their digital potential (defined as “weighted deployment of digital assets, labour, and practices across all sectors, compared with the most digitised sector.”)

The game isn’t easy, and Europe doesn’t seem to be becoming a better player — that 12% is only two-thirds of the potential captured by the US. Information and communications technology (ICT) accounts for only 1.7% of Europe’s GDP, while it accounts for 2.1% in China, and 3.3% in the US. These GDPs are comparable, creating a bad look for Europe, especially considering it is home to 6 million professional developers – more than the US – who could be positioned in the AI industry, many of whom are millennials. Additionally, approximately a quarter of the world’s AI startups are headquartered in Europe, but many are in early stages – again reinforcing the international lag.

The list goes on, but the point is short, sharp, and somewhat bitter: Europe has the resources to be an international AI competitor, but it is not capitalising on them.

Firms adopting AI at scale“In the most advanced industry – high-tech – 93 percent of adopters are capturing AI for 10 percent of its potential use, but still only 17 percent of European companies (compared with about 22 percent in the United States) are using AI technologies at 75 percent of potential. At the other extreme, only 2 percent of European firms in healthcare systems and services are using those technologies at 80 percent of potential,” the study finds.

Play fast, play hard, scale up

European companies must focus on three areas that greatly boost productivity within the AI industry: competition, innovation, and new skills. More than half of European companies see both AI-native and early adopter organisations as business threats. Non-adopters, however, should be keen to take a slice of the pie. “The primary objective for 15% of European companies investing in AI is taking market share from competitors,” the study states. Simultaneously, “digitally savvy European companies are 15-20% more likely to use AI.”

As an innovation-led technology, AI holds vast potential for revenue growth. In the retail sector alone, the technology stands to save companies approximately €300 billion in the coming years. As such, European businesses are salivating to tap into that literal wealth, with approximately 30% of companies adopting AI using it to expand or explore new revenue streams. There also seems to be an exponential effect in how companies view the technology. “Companies with less experience in AI tend to focus on its ability to help cut costs, but the more companies use and become familiar with AI, the more potential for growth they see in it.”

Skill is an area where things get tricky. Simply put, some companies are not capable of implementing and scaling AI in a reasonable and effective ways. “The two biggest barriers to AI adoption in European companies are linked to having the right workforce in place. The first barrier relates to the ability to use ICT tools in work. The second barrier relates to companies’ need for skills to provide new AI applications and services, such as AI coding and analytic expertise.” As the technology continues its progression, it will almost certainly become more accessible for companies to find ways in which to leverage AI in their operations, helping to close the international gap.

Europe is already in short supply of AI skills

Automated economic superpowers

Besides adding the previously stated €2.7 trillion to the continent’s GDP, “if Europe further improves on its assets and competences sufficiently to catch up with the United States’ AI frontier, the potential could be even higher. GDP growth could accelerate, adding an extra €900 billion to GDP and bringing the total potential AI boost to €3.6 trillion by 2030.”

The study names seven economic enablers that could help usher in AI technology: automation potential, investment capacity, connectedness in the macro level, digital legacy, innovation foundation, human capital, and the maturity of AI ecosystems on the micro level. “In general, Europe fares well with regards to its automation potential and in the stock of cognitive skills, but has not, on average, been able to increase its innovative capacity, and faces challenges in developing a large AI startup ecosystem,” the authors find.

The advancement of automated technology rides side by side with fears of the replacement of human jobs. When the robots come, where do the humans go? The answer is surprisingly good news: AI can provide a significant boost in productivity without costing human jobs in the long term. “Throughout history, technology has eliminated some types of jobs, but it also always created new ones,” the study states. “Powerful development of AI may be the best hedge and may even be the catalyst for new jobs in the future.”

Performance varies, yet the show must go on

The development, implementation, and scaling of AI will differ depending on the country where it is used. Nations have varying levels of industry ability and enablers — when averaged, these affect the overall image of the Europe’s AI gap. Southern and Eastern European countries are the slowest to adopt AI, with lower available skilled employees and fewer firms using AI innovatively and advantageously.

Northern European and Anglo-Saxon countries somewhat obviously lead Europe in AI, but they also come in ahead of China. The US is a strong leader in the field overall, and China has the unique ability to reinvest its gains into the economies and is already deploying AI ecosystems, but “in general, automation potential is lower in China than Europe because of lower incentive to arbitrage salaries.”

AI maturity per European country

To continue striding forward, European countries must rely on one another to create a greater whole. “For instance, Ireland tops the index on ICT connectedness, Finland on human capital, and the United Kingdom on innovation,” the study states. “The dispersion of strengths indicates that countries can borrow best practice from each other to create a more favourable and more enabling environment for AI.”

Prioritise, light the fire, automate

To work toward closing the AI gap, the study found several priorities on which Europe should focus. First, the continent must continue the development of a “vibrant ecosystem” of firms that will leverage AI technology. Veteran firms must also move ahead with digital transformations, rather than relying on their younger counterparts. Focus should also remain on the digital single market, which covers marketing, e-commerce, and telecommunications. Finally, by searching for and cultivating a talented and skilled workforce – be it through education or retraining – as well as finding paths on which to “guide societies through the potential disruption” (such as unease about potential unemployment), Europe can and will position itself more advantageously among the industry’s international leaders.

Related:Talent shortage is more pressing than job losses by robotisation.

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