Imagine a scenario where the cost of making predictions is significantly reduced. Prediction isn’t just about understanding the present; it’s also about anticipating the future, whether that’s in the next five seconds or the next five years.
Artificial intelligence can be seen as a powerful prediction tool, taking the information you already possess and providing insights into what you don’t know.
In the past, making accurate predictions came at a high cost, often requiring large teams of engineers and proprietary datasets. However, the emergence of large language models (LLMs) has revolutionized this, offering affordable, ready-to-use solutions. As I discussed during the Reach Europe 2025 conference, the declining cost of predictions is reminiscent of the historic reduction in artificial lighting costs following the invention of the lightbulb a century ago, unlocking new avenues for innovation and entrepreneurship.
To thrive in this rapidly evolving landscape, businesses in Europe and beyond need to pay attention to three major AI trends.
1. The Rise of Agentic AI in Europe
Despite fears that privacy regulations in Europe might slow down the adoption of agentic AI, my findings suggest otherwise. Venture capital firms across the UK and Europe, including Joint Capital, Octopus Ventures, HP Capital, Runa Capital, Episode One, and Teacher Venture Growth, are increasingly investing in agentic AI startups throughout the region.
Currently, there are nearly twenty promising agentic AI startups in Europe, many of which are emerging from Y Combinator. A notable example is LightOn, a French startup making strides in the banking, defense, and high-tech sectors. These advancements indicate that the rise of agentic AI is not confined to Silicon Valley, but rather an opportunity that European entrepreneurs can leverage.
