Though Europe has measures that address how consumers might encounter AI, technology will impact them if the worst scenarios bear

Europe’s dilemma over AI was rendered in stark terms this week. The head of the continent’s central bank, Christine Lagarde, said Europeans have two options: shun the technology and lose out on growth; or embrace it and become dependent on tools developed by the US and China.

The great debate over AI safety that has erupted in recent days threatens to make the choice moot. If the worst scenarios come to bear – and experts have differing views on this – then the technology will impact the continent regardless.

We examine claims and counterclaims about the risks and calls to slow down the pace of AI development

There have been some shocking claims in recent days about AI safety: we face a 10% chance of doom; AIs are worse than nukes; a “botnet” threatens the entire internet; it’s all a big tech psyop.

Below, we look at six claims and reactions to them.

Observers express concern that the division has lost its independence and commercial reality has taken over

When Sir Demis Hassabis said AI had brought the world to a “pivotal moment in human history” last month, he knew another big change was imminent.

This shift was closer to home. The Nobel prize-winning head of Google DeepMind, Google’s AI unit, announced this week he was relinquishing his day-to-day duties as chief executive and becoming chair. He is also taking on the role of chief scientist at DeepMind’s parent, Alphabet.

Sources say hardline measures will also prevent young users from being able to talk to strangers on gaming apps

• Why is the UK launching an ‘Australia plus’ social media ban and how will it work?

Keir Starmer is to ban under-16s from major social media apps such as TikTok, Instagram and X in sweeping restrictions described as “Australia plus”, the Guardian understands.

In a major policy shift far tougher than previously briefed, the prime minister will announce that teenagers will be banned from all the main social platforms. Online products that are not covered by the ban – such as gaming apps – will face new restrictions such as having the option to chat to strangers removed.

Expenditure is growing fast and consumer take-up accelerating. But alarm bells are sounding

The race is very much on. Elon Musk’s SpaceX, which makes AI models as well as space rockets, announced last week it is seeking a $1.77tn (£1.31tn) valuation on the US stock market while Anthropic, the startup behind the Claude chatbot, said it had filed for an initial public offering. OpenAI, the developer of ChatGPT, is expected to follow.

This latest peak in the AI market comes amid a multitrillion-dollar spending spree on related infrastructure such as datacentres. Meanwhile, companies are attempting to deploy the technology in a way that makes investing in it worthwhile. Here’s a look at what stage the AI boom is at and six key charts that tell us how we got here.

While the technology is set to play a growing role in modern warfare, there remains an unresolved ethical challenge

Should the AI-powered drones of the future have a licence to kill? The question is becoming ever more pressing as governments and the defence industry acknowledge that drone systems will play an increasingly crucial role in future warfare.

With drones being deployed in huge numbers in the Ukraine war and AI being used to assist bombing missions in the Iran conflict, there is an expectation among some observers that weapons will have to operate with increased operational autonomy, which means they will need something approximating a moral framework.