European Central Bank President Christine Lagarde recently discussed the impact of artificial intelligence (AI) on the economy, highlighting the significant gap in AI adoption between the US and Europe. According to a study by the National Bureau of Economic Research, between 1995 and 2025, output per hour increased by 85% in the US versus 29% in Europe. The study also found that in 2026, 43% of US workers used AI for their job, compared to 32% of European workers. The share of firms using AI for production ranged from 9% in Sweden to less than 1% in Serbia. The ECB's strategy assessment, published in June 2025, reconfirmed the bank's commitment to a symmetric 2% inflation target and adjusted its strategy to a more uncertain and challenging environment, including the impact of AI. The study suggests that AI adoption is closely linked to firm personnel management practices and that workers in firms with higher personnel management indices report higher rates of AI adoption. The ECB's strategy review, published in July 2021, adopted a symmetric 2% target for inflation over the medium term and identified key topics crucial for maintaining price stability. The study's findings imply that a 10-percentage-point increase in AI adoption is associated with 2-5 percentage points of additional cumulative productivity growth. However, the study notes that the estimates are not causal and should be interpreted cautiously, given the short time horizon over which AI has been widely adopted.