Blog post

Europe has an artificial-intelligence skills shortage

How severe is Europe’s dearth of AI talent and how does it compare to the United States, China and the United Kingdom – the world’s AI champions?

Publishing date
27 August 2020

However intelligent artificial intelligence might be, it still relies on qualified humans, of which there is a notable lack in the European Union. In 2019, German firms spent an average of hunting to fill each tech position.

The lack of AI skills undermines Europe’s industrial prospects. Without the right training to close the skills gap, fewer businesses in Europe are able to integrate AI into their business operations, foregoing possibly significant productivity gains. A scarcity of talent in Europe also shows that salaries and broader job attractiveness in the European Union cannot compete in the global labour market. Promising European start-ups are unable to attract the talent they need. As long as AI expertise remains , the EU will fall short of its technological and growth goals.

Europe is home to some of the world’s best science and engineering research institutions and indeed produces more doctorates in these fields than any other part of the world[1]. But, as Kai-Fu Lee points out in his book , the adoption of AI technology relies less on top-notch scientists than it does on skilled data scientists, programmers and AI business translators, who can put existing deep-learning algorithms to practical commercial use.

So how severe is Europe’s dearth of AI talent and how does it compare to the United States, China and the United Kingdom – the world’s AI champions? We find that the EU has a poor track record of training and retaining AI talent. Some new initiatives are attempting to improve the situation, but their results are not yet visible in the data.

AI-relevant degrees awarded each year

Data on computer science degree awards provides some indication of educational attainment in AI-relevant degrees[2]. Computer Science is a broad field that includes data science, information technology, software engineering, robotics and other AI specialisations[3]. Unfortunately, data is not available at the more granular level[4].

Figure 1 shows computer science bachelor degree awards in the EU, US and UK, but not China, because of lack of data. Figure 2 shows postgraduate degree awards (masters’ and PhD combined) in all regions. To give a sense of the EU’s relative firepower, Figure 3 shows the absolute numbers of postgraduate degrees awarded each year (note however that the EU figures are an underestimate, since data is not available for several EU countries, including France).

The EU fares poorly by all three measures: the number of awarded bachelor’s degrees actually decreased in the eight-year period ending 2018. While there has been some progress on the postgraduate front, the EU’s 6% annual growth rate pales in comparison to the US’s 13%. In other words, the gap has widened.

Capacity to attract and retain AI PhD talent

The EU’s AI education deficit could be mitigated through in-bound migration. However, and as Figure 4 illustrates, the EU labour market attracts a relatively small share of international AI talent. Worse still, Europe loses a large share of the PhDs it trains (to the US especially).

Figure 4 is based on an analysis by of the profiles of PhD-holding contributors to top AI conferences[5].

The distribution of AI talent in the active population

Another piece of evidence comes from a in which AI skills were identified through a combination of keyword filtering and machine-learning screening of more than 645 million profiles. The study found that the UK has 1.8 times more individuals with AI skills than the EU average[6]. The US has 3.1 times more.

Number of universities in top rankings for AI

Finally, we look at the number of top AI universities in each region, ranked on the basis of publication output. Figure 5 shows clearly that US universities dominate the ranking. EU universities consistently underperform.

The numbers presented here paint an unflattering picture. Some efforts are underway at the national and EU levels to make up the AI deficit. In August 2019, the German government said it would award 30 new professorships in AI. In February 2020, the European Commission devising a plan that would “attract the best professors and scientists” and “offer world-leading Master’s programmes in AI”. These are small, initial steps.

The inadequacy of the EU’s response extends to its budgetary commitments. The EU budget, as agreed by the , dedicates less than €500 million to strengthening the EU’s digital skills (a 17% reduction compared to the European Commission’s proposal)[7]. Spread over seven years and 27 countries, €500 million is not ambitious enough – consider that it can cost to finance an internationally competitive AI professorship.

Of the 30 new professorships promised by the German government, only two have been awarded so far. This is a prestigious and well-funded initiative and its slow take up illustrates the difficulty in building AI educational capacity in the EU. The EU needs substantial investment if it is to achieve its technological and growth goals.

[1] OECD, Education and Training Indicators, 2019.

[2] Following the definition provided in an on AI education in Europe. We also explored completion of AI-relevant courses. However data was only available for the US.

[3] See the full list of programmes for the EU ; for the US ; and for China .

[4] China: The Chinese authorities do not report statistics on education at a granular programme-level – reporting is done at a high general subject level (eg ‘Science’ or ‘Enginering’). We must thus rely on non-official estimates. We found a point estimate for the number of computer science graduates at the postgraduate level for the academic year 2014/2015. It is from an academic paper in which the authors conducted their own survey of major research universities in China. EU: There is no aggregated reporting at EU level. We must thus rely on non-official aggregations. Informatics Europe, an association of computer science departments and research laboratories in Europe, conducts an aggregation exercise yearly for computer science degrees. US: The US department of education reports the number of computer science degrees awarded each year.

[5] Implying a selection bias in favour of PhD holders who have the time, connections and financing to attend such conferences.

[6] On data limitations, LinkedIn states that “LinkedIn’s membership covers around 50% of Europe’s active labour force, its members are not evenly distributed across the EU. While the results are therefore not statistically representative, the digital and tech workforce tends to be well represented within our members”.

[7] In the European Commission’s May 2020 budget proposal for the Digital Europe programme, €600 million of the total programme budget of €8.2 billion was allocated to Digital Skills & Jobs, ie 7% of the total. We applied this ratio to the Europe Council’s July 2020 revised budget for the Digital Europe programme (€6.8 billion).

About the authors

  • Guntram B. Wolff

    Guntram Wolff is a Senior fellow at Bruegel. He is also a Professor of Economics at the Université libre de Bruxelles (ULB). 

    From 2022-2024, he was the Director and CEO of the German Council on Foreign Relations (DGAP) and from 2013-22 the director of Bruegel. Over his career, he has contributed to research on European political economy, climate policy, geoeconomics, macroeconomics and foreign affairs. His work was published in academic journals such as Nature, Science, Research Policy, Energy Policy, Climate Policy, Journal of European Public Policy, Journal of Banking and Finance. His co-authored book “The macroeconomics of decarbonization” is published in Cambridge University Press.

    An experienced public adviser, he has been testifying twice a year since 2013 to the informal European finance ministers’ and central bank governors’ ECOFIN Council meeting on a large variety of topics. He also regularly testifies to the European Parliament, the Bundestag and speaks to corporate boards. In 2020,  ranked him one of the 28 most influential “power players” in Europe. From 2012-16, he was a member of the French prime minister’s Conseil d’Analyse Economique. In 2018, then IMF managing director Christine Lagarde appointed him to the external advisory group on surveillance to review the Fund’s priorities. In 2021, he was appointed member and co-director to the G20 High level independent panel on pandemic prevention, preparedness and response under the co-chairs Tharman Shanmugaratnam, Lawrence H. Summers and Ngozi Okonjo-Iweala. From 2013-22, he was an advisor to the Mastercard Centre for Inclusive Growth. He is a member of the Bulgarian Council of Economic Analysis, the European Council on Foreign Affairs and advisory board of Elcano. He is also a fellow at the Kiel Institute for the World Economy.

    Guntram joined Bruegel from the European Commission, where he worked on the macroeconomics of the euro area and the reform of euro area governance. Prior to joining the Commission, he worked in the research department at the Bundesbank, which he joined after completing his PhD in economics at the University of Bonn. He also worked as an external adviser to the International Monetary Fund. He is fluent in German, English, and French. His work is regularly published and cited in leading media. 

  • Julia Anderson

    Julia worked at Bruegel as a Research Analyst.

    Prior to joining Bruegel, Julia worked as a competition policy consultant for two years—producing economic analyses in the context of EU mergers and antitrust investigations (Compass Lexecon).

    Julia also has experience teaching economics (NYU), editing academic journals (Journal of Wine Economics), and working in urban development (Vivid Economics). She has trained at a variety of institutions, including research organisations (Max Planck Institute) and government bodies (NY State Attorney General and US Treasury).

    Julia holds master’s degrees in economics (NYU) and in philosophy (LSE), and a bachelors’ degree in economics (NYU). She is fluent in French.

  • Paco Viry

    Paco works at Bruegel as a Research Assistant Intern. Paco is an Economics Master’s student at École Polytechnique in Paris, where he is expected to graduate in 2022. He studies economics, applied mathematics and computer science.

    He previously worked as a Rescue Team Manager in the Firemen Brigade of Paris. This past year, he was able to predict the outcome of the UN votes using artificial intelligence.

    Paco is fluent French and English and he speaks Spanish at an intermediate level.

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