In brief
- Paris’s Viva Technology gathering last week was full of talk about how far France has come as an AI leader.
- A lot of buzz circled the French AI company H, which raised $220 million from investors such as Amazon.com.
- One thing that kept cropping up a lot was how U.S. tech companies, like Microsoft and Amazon, have worked to improve France’s AI scene.
France is positioning itself as a leading force in the field of artificial intelligence. [style note: Paris is the only city used in datelines.]
The Viva Technology conference in Paris last week was abuzz with discussions about France’s significant progress as a frontrunner in the field of AI.
There was a lot of buzz surrounding the French AI company H, formerly known as Holistic, when it secured a seed funding round of $220 million. Could you please make a slight adjustment to the second bullet point in the key points? This is in relation to the investors, which include the renowned U.S. tech company Amazon and the former CEO of Google, Eric Schmidt.
It is noteworthy that many French AI firms have been successful in attracting significant investments, often from prominent American technology companies.
In recent weeks, France has experienced a significant influx of private investments, with Microsoft leading the way by committing 4 billion euros ($4.4 billion), marking its largest investment in France to date.
AI is omnipresent at Viva Tech
AI was omnipresent at Viva Tech, permeating every aspect of the event. Just beyond the eye-catching, vibrant pink “VIVA” sign at the entrance lies a bustling alley known as “AI Avenue.” This tech hub is home to renowned U.S. tech giants like Salesforce and AWS.
Generative AI was prominently showcased across various companies, including some unexpected ones.
At the Porte de Versailles conference venue, L’Oreal showcased their impressive AI-powered beauty assistant, “BeautyGenius,” which drew attention with its large booth near the centre.
Viva Tech’s success has taken on great significance for France, as it strives to establish itself as a prominent tech and AI hub capable of competing with global leaders like the U.S. and China.
According to Bruno Le Maire, France’s finance minister, France is at the forefront of artificial intelligence in Europe. He made this statement during an interview with CNBC’s Arjun Kharpal at Viva Tech last week.
He emphasised the importance of France’s independence in the field of artificial intelligence, expressing the desire for the country to develop its own AI technology rather than relying solely on assistance from U.S. tech giants.
Le Maire expressed his enthusiasm for Microsoft’s investment in France, stating, “We warmly welcome Microsoft to our country. However, our current challenge lies in acquiring our own devices and employing our own scientists. We are putting in a great deal of effort towards achieving this goal.
France has a robust AI research and development ecosystem, housing prominent facilities such as the Facebook AI Research Center from Meta and Google’s AI Research Hub in Paris, alongside top universities.
“France is a thriving innovation hub in Europe,” stated Etienne Grass, the France managing director of Capgemini Invent, the digital innovation arm of Capgemini, in an interview with CNBC. According to impressive advancements in AI, the country has a thriving startup scene, said Grass.
According to Imran Ghory, partner at Blossom Capital, France has excelled in research and academia but has faced challenges in attracting top talent to high-performing companies.
AI labs from Meta and Google have established a platform where students and researchers can gain valuable insights into the inner workings of top tech companies,” Ghory stated.
It is evident that the efforts of numerous researchers and AI engineers are paying off, as they are now venturing into entrepreneurship and establishing their own companies.
Striving for technological dominance
During an interview last week, French President Emmanuel Macron expressed his belief that France is at the forefront of the tech industry in Europe. However, he pointed out that Europe is falling behind the U.S. in terms of technology and emphasised the need for more major players in the continent.
During a discussion at the Elysee Palace, Macron said, “It is concerning to see a global landscape where China and the U.S. are the only players.” He spoke highly of Mistral, the French AI company supported by Microsoft, a prominent tech giant.
Last week, Macron had a meeting with some prominent figures in the technology industry. Eric Schmidt, the former CEO of Google; Yann LeCun, the chief AI scientist at Meta; and James Manyika, Google’s senior vice president of tech and society, were among the attendees. The purpose of the meeting was to explore strategies to transform Paris into a leading global hub for artificial intelligence.
Maurice Levy, the CEO of Publicis Groupe, expressed his belief that France has the potential to become a leading country in AI development. Levy expressed France’s strong determination to bridge the gap between the U.S., China, and Europe in the field of AI.
According to Levy, France has the potential to become one of the top five countries in the world when it comes to AI. In a recent TV interview, he expressed his belief that France can join the ranks of the U.S., China, Israel, and the U.K. in terms of AI advancements. He mentioned H’s impressive funding round as a testament to the current surge in French AI.
According to Levy, around 40% of the technology demonstrations at Viva Tech showcased the capabilities of artificial intelligence. AI is rapidly gaining momentum and has already made significant strides,” he stated.
During a recent fireside discussion, Manyika from Google mentioned that a significant amount of the innovation the company has been introducing is coming from engineers in France.
According to him, Google’s Gemma AI, a lightweight, open-source model, was extensively developed at the U.S. internet giant’s Paris AI hub.
In 2023, France emerged as a dominant player in the European AI startup funding landscape, securing a significant 20% share. This surpassed the average of 15% of European funding that typically flows into AI startups across the bloc, as reported by Dealroom.
According to Dealroom, U.K. firms have raised more than double the amount of both AI and GenAI investment compared to France, indicating that France is not the leading country in Europe when it comes to AI.
The ongoing debate between innovation and regulation
According to France’s Macron, Europe’s main focus should be on speeding up AI research and development while also implementing regulations at a suitable level.
Last week, the EU approved the AI Act, a significant law that effectively regulates artificial intelligence.
Several technology executives have expressed concerns that Europe’s AI ambitions may be hindered by overly restrictive regulations. France has been one of the countries expressing concerns about the EU AI Act, suggesting that it may hinder innovation.
Pascal Brier, Capgemini’s chief innovation officer, emphasised the importance of striking a balance between regulating AI to prevent excessive power while also safeguarding innovation. He cautioned against unintentionally stifling progress with new legislation like the AI Act.
He suggested that regulators should refrain from adopting the “principle of precaution” when it comes to AI development, arguing against the notion that AI creators should universally avoid actions that could potentially cause harm.
“AI is unstoppable. This is just the beginning,” Brier stated in an interview with CNBC. “The advancements in technology are only going to continue.”
Source – CNBC News
