Palantir Warns Europe on AI Adoption Gap

Louis Mosley, chief executive of Palantir UK, warned that British and European businesses could lose competitiveness against US rivals within four or five years unless they accelerate AI adoption. He said American companies are already gaining commercial value from AI, citing Palantir’s 148 per cent year-on-year growth in US commercial revenue in the third quarter. Mosley said comparable growth was not visible elsewhere and warned that a widening gap could leave European firms uncompetitive.

Europe has produced fewer leading AI developers than the US, which includes OpenAI, Anthropic and Google, while European policymakers have increasingly emphasized business adoption over developing the most powerful models. European Commission president Ursula von der Leyen recently argued that Europe need not develop frontier AI itself to gain economic benefits. Eurostat figures show that one in five European businesses used AI last year. Research by Oliver Wyman and UK Finance found that more than 90 per cent of British financial services firms had deployed predictive AI, while nearly 70 per cent were still piloting generative AI.

The UK government has committed £500m to a Sovereign AI Fund and pledged to expand domestic computing infrastructure. In July, MPs warned that Britain lacked a coherent strategy for securing critical technologies and could have access restricted by foreign partners. Palantir reported third-quarter revenue of $2.31bn, up 96 per cent year on year and above Wall Street expectations of $2.18bn. Its US commercial business rose 148 per cent to $984m, overtaking its US government business for the first time. Palantir signed 212 deals worth $2.9bn, including 64 contracts valued at $10m or more, and raised its full-year revenue forecast to approximately $8.53bn from around $8.15bn. CEO Alex Karp said China’s AI progress made US technological leadership important, called for closer cooperation with European allies and urged governments to rethink AI regulation.

Louis Mosley, chief executive of Palantir UK, warned that British and European businesses could lose competitiveness against US rivals within four or five years unless they accelerate AI adoption. He said American companies are already gaining commercial value from AI, citing Palantir’s 148 per cent year-on-year growth in US commercial revenue in the third quarter. Mosley said comparable growth was not visible elsewhere and warned that a widening gap could leave European firms uncompetitive.

Europe has produced fewer leading AI developers than the US, which includes OpenAI, Anthropic and Google, while European policymakers have increasingly emphasized business adoption over developing the most powerful models. European Commission president Ursula von der Leyen recently argued that Europe need not develop frontier AI itself to gain economic benefits. Eurostat figures show that one in five European businesses used AI last year. Research by Oliver Wyman and UK Finance found that more than 90 per cent of British financial services firms had deployed predictive AI, while nearly 70 per cent were still piloting generative AI.

The UK government has committed £500m to a Sovereign AI Fund and pledged to expand domestic computing infrastructure. In July, MPs warned that Britain lacked a coherent strategy for securing critical technologies and could have access restricted by foreign partners. Palantir reported third-quarter revenue of $2.31bn, up 96 per cent year on year and above Wall Street expectations of $2.18bn. Its US commercial business rose 148 per cent to $984m, overtaking its US government business for the first time. Palantir signed 212 deals worth $2.9bn, including 64 contracts valued at $10m or more, and raised its full-year revenue forecast to approximately $8.53bn from around $8.15bn. CEO Alex Karp said China’s AI progress made US technological leadership important, called for closer cooperation with European allies and urged governments to rethink AI regulation.