Europe’s banks embrace AI — and confront the price of dependence on US tech - The Economic Times

• Leena Ylä-Mononen, head of the European Environment Agency, is urging the EU to mandate that Big Tech companies disclose the energy and water consumption of their data centers. • The call for transparency comes as the rapid expansion of AI infrastructure threatens to increase the ecological footprint of the digital sector.

• On May 25, 2026, India's startup ecosystem saw significant growth across diverse sectors, highlighted by Yes Madam securing Rs 50 crore in new funding. • Key expansions include the entry of Voy into the Indian market, Graamya's rural spice initiatives in Kerala, and the launch of a Quantum AI lab in Mysuru.

• A new report predicts that up to 120 Indian startups could launch public listings by 2030, signaling strong growth despite global funding challenges. • Investment is shifting toward high-growth sectors, specifically generative AI, fintech, health technology, and green energy/cleantech.

• Technology giants and governments across the U.S., Europe, and Asia are competing for control over strategic energy infrastructure and land suitable for data center development. • Access to electricity and transmission capacity has emerged as the primary competitive advantage, as data centers now serve as the backbone of the global AI economy.

• Between May 18 and 25, 2026, the AI industry saw major updates including Google I/O, the release of Composer 2.5, and the launch of Qwen 3.7 Max. • Microsoft expanded its AI capabilities by making computer-use agents generally available to all Power Platform tenants via Copilot Studio.

• Prime Minister Narendra Modi highlighted the growth of India's startup ecosystem, which now includes 2.3 lakh recognized startups. • The government is accelerating growth through new policy initiatives, funding mechanisms, incubation programs, and strategic global collaborations.

• EU enterprise AI adoption reached 20% in 2025, though the region continues to lag behind global competitors despite some bright spots like Denmark. • The EU AI Act is contributing to delays, with nearly 60% of EU and UK developers reporting launch setbacks and two-thirds of companies unable to define their legal obligations.

• The European Union has concluded a consultation focused on establishing standardized methods for measuring AI energy consumption across training, inference, hardware, and performance indicators. • The initiative stems from Annex XI of the AI Act, which mandates that providers of general-purpose AI models document their known or estimated energy usage within technical documentation.

• A group of prominent French companies, including Orange, Capgemini, EDF, and Scaleway, have formed the AION consortium to bid for the European Union’s AI Gigafactories initiative. • The consortium aims to build massive computing infrastructure within France to reduce reliance on non-EU technology providers.

• Governments and enterprises in Southeast Asia, Africa, and Latin America are increasingly adopting low-cost Chinese AI servers over US-dominated alternatives. • This shift is driven by severe budget constraints and a strategic desire to avoid over-dependence on a single global superpower.

• A weekly industry roundup for the week of May 25, 2026, highlights a series of business wins, new appointments, and executive exits. • Key agencies and firms featured in this week's updates include Maker Lab, DDB Singapore, Dentsu Webchutney, Southern Cross Media Austereo, and MC&V.