Europe is falling behind other global regions in terms of competitiveness. To reverse this trend, the EU must strengthen its productivity growth – a key message in former ECB President Mario Draghi’s report on Europe’s future competitiveness. In short: more needs to be produced with fewer working hours. Central to this equation is the digital economy, where Artificial Intelligence (AI) offers a generational opportunity. AI has the potential to increase productivity, support innovation, strengthen competitiveness, and improve working conditions – while also enabling the green and digital transitions. But to unlock this potential, the EU must avoid regulatory overreach and ensure that businesses can adopt and scale AI solutions. This is not the time for new burdensome rules – especially as companies already face a heavy administrative load and skill shortages.