Smith likened advancements in artificial intelligence and cloud computing to the industrial revolution, emphasizing their importance in driving innovation and supporting public services.

Looking ahead, Smith expressed optimism for continued cooperation in cybersecurity and data privacy between the US and EU, advocating for a formal agreement akin to the CLOUD Act by the end of 2025.

Calls have emerged in Europe to limit American companies' participation in public sector contracts due to perceived threats from the US government.

Companies in Europe are increasingly seeking solutions that enhance their digital sovereignty amid concerns about international relations and potential trade barriers.

Microsoft's challenges in Europe are exacerbated by the unpredictable nature of US policies, which could undermine customer confidence and impact revenues from the region.

Microsoft has unveiled a legally binding European Digital Resilience Commitment aimed at enhancing its cloud operations across Europe.

The company plans to expand its data center capacity in Europe by 40% over the next two years, covering 16 countries, to align with the EU's ambition to triple its AI computing power.

Currently, the EU and the US are in discussions to prevent a trade conflict that could threaten their $1.8 trillion trade relationship.

Smith expressed satisfaction over the suspension of further tariff escalations between President Trump and the European Union, highlighting the positive impact of transatlantic ties on economic growth.

Overall, tensions between the U.S. and Europe have escalated, particularly due to trade wars and policy changes under President Trump, raising concerns about the stability of transatlantic relations.

In light of geopolitical tensions, Smith acknowledged that European governments might consider public financing for local technology solutions.

Amidst skepticism regarding existing data transfer agreements, concerns have been raised about the future of EU-US data relations under the new Trump administration.