This discussion paper presents the key features of Artificial Intelligence (AI), highlighting the main differences with respect to previous IT and digital technologies. It presents the most relevant facts about AI diffusion across EU countries, and discusses the main economic implications, focusing especially on its impact on productivity and labour markets. While AI presents a formidable opportunity, it also entails major challenges, with implications for policy. This paper focuses on policies to remove bottlenecks to AI development and adoption, regulatory policies, competition policy, policies to deal with labour market and distributive implications.European Commission: Directorate-General for Economic and Financial Affairs, Simons, W., Turrini, A. and Vivian, L., Artificial intelligence – Economic impact, opportunities, challenges, implications for policy, Publications Office of the European Union, 2024, https://data.europa.eu/doi/10.2765/48272
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