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ECB Chief Economist Philip Lane warned that rising long-term interest rates are weighing on Europe's artificial intelligence deployment, according to the Financial Times. The comments highlight how tighter financing conditions are raising the cost of the large, long-horizon investments AI infrastructure requires, potentially slowing Europe's buildout relative to global competitors. The remarks matter because they link monetary policy and bond-market dynamics directly to the region's AI investment outlook. What to watch next is whether sustained higher long-term yields further delay European AI capital spending plans.

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Philip Lane, ECB, Europe, Financial Times