AI Value Creation and Open-Weight Models

Europe’s AI strategy has focused heavily on expanding computing capacity and developing advanced models. Whether these investments generate economic benefits depends on how firms use AI and which capabilities they actually need. Our study examines these questions in software production, consumer banking and private equity. It finds that the strongest evidence for value creation comes from cost advantages through higher productivity. The potentially greater benefits of differentiation remain largely unrealised, pointing to the need for a more strategic use of AI. The study also shows that leading open-weight models offer credible alternatives to proprietary models for many applications, often at substantially lower access prices. This creates opportunities for European firms to retain more of the value they generate with AI. However, tighter licences, declining competition among inference providers and insufficient financing for future model development could threaten these advantages.