People are probably assuming that the trends from the last few decades continue. The EU fumbled semiconductors, production went to Asia. The EU fumbled the software revolution, the successes mainly came from the US. They fumbled the transition to smartphones despite the Nokia advantage. They missed tablets; seemed like they just didn't have the industrial vigour to make a serious attempt.
The safe money is they are going to be an also-ran for the AI revolution. They did manage to force Apple to switch from using lightening connectors to USB though so their wins can't just be laughed off. Maybe they'll surprise us but it'd be a welcome change from their usual routine.
> The EU fumbled semiconductors, production went to Asia
Production of state of the art semiconductors, yes. NXP, STMicro, Infineon are still there and massive in automotive, industrial, card chips, etc.
> The EU fumbled the software revolution, the successes mainly came from the US
Worldwide massive success, mostly yes. Most European countries have their local or regional success stories though.
> The safe money is they are going to be an also-ran for the AI revolution
Not really. Past performances, or lack thereof, are not indicative of future ones.
Mistral are pretty good and selling well in the enterprise space. Some of the best voice models are coming from France (Kyutai).
We're lucky the EU regulators moved so slowly that the industry had already consolidated around USB-C (a standard that Apple was a key participant of and would have eventually moved to eventually). When they were first deciding what to do back in 2209, they decided that Micro-USB was the best standard. Imagine a world where everyone was forced to use Micro-USB...
The obvious takeaway here is that a country / blok can't regulate their way to innovation... so I'm not exact sure why you included it in your list of paradigm shifts. If anything, when the next paradigm shift around charging drops, the EU will be once again on the back-foot due to these short-sighted USB-C regulations they enacted.
I do share your sentiment that EU will miss the train once again on AI.