Welcome to ICYMI – a weekly snapshot of European news stories that have given me pause for thought. ICYMI is a chance for you to go beyond the front-page headlines and find out what other stories may be worthy of your attention. This week:
- How a new trade deal could help UK startups source Indian tech talent
- Microsoft focuses on nurturing agentic AI startups in France
- Retailers across the continent contend with cyber attacks
The ongoing race to become Europe’s AI superpower continues, with both the UK and France vying for AI leadership in the region.
France has more support from Microsoft which this week, as the tech company launched the second cohort of its GenAI Studio at Paris’s Station F, focusing on “agentic AI”—autonomous systems capable of proactive interaction.
Fifteen French startups were selected, with five emphasising agentic AI. Notable participants include Ed.ai, which automates grading and personalised learning paths in education; Thunder Code, which uses AI agents for automated software testing; and Rounded Technology, which enables businesses to design and manage their own AI agents. Microsoft’s goal is to support 2,500 French startups in adopting AI by 2027.
Across the channel, London continues to develop as an AI hub, though there are warnings that its impressive growth so far might be curtailed by a lack of talent.
According to Amazon Web Services the city is leading the UK’s AI adoption, with 67% of businesses integrating AI—well above the national average of 52%. Startups are especially advanced, being 1.5 times more likely than regional peers to reach the highest levels of AI maturity. However, a growing digital skills shortage—cited by 38% of UK firms—could stall this momentum, particularly among larger enterprises that are slower to adopt AI at scale. This divide risks creating a two-tier economy, where agile startups thrive while bigger firms lag behind.
UK startups more attractive to Indian talent
UK tech companies will soon be in a stronger position to access top foreign tech talent after the country’s Labour government signed a long-desired trade deal with India. The wide ranging deal, which will cut tariffs and add £4.8bn a year to the UK economy by 2040, has long been touted as one of the biggest prizes of Brexit. UK companies will be able to offer Indian tech workers enhanced packages while British startups will be able to access Indian public service markets.
UK Prime Minister Keir Starmer said the “landmark deal” with India would “grow the economy and deliver for British people and business.”
As well as new opportunities for collaboration in the tech market the deal promises a boon for the UK’s car and alcohol industries, which have suffered from the impact of Donald Trump’s tariff strategy.
Tariffs and their impact are also concerning Microsoft, which this week pledged to legally fight any US government order that could cut off cloud services to European clients. In a move to reassure European governments amid geopolitical tensions, the company announced five digital commitments including operational oversight under European law and a 40% expansion in European cloud capacity.
The move comes after criticism of the company by regulators in Europe and the UK, who point to practices which they deem to be uncompetitive. Some European politicians have even begun calls for a native cloud to protect their tech industries. France’s AI minister, Clara Chappaz, recently called on the continent to “work as a pack” to take on US “predator” tech firms, particularly in the cloud services sector.
Back to AI and Handelsblatt in Germany is reporting that very few users check the results they received from AI engines like ChatGPT. According to a global EY study, just 27% of AI users in Germany verify results from tools like ChatGPT, placing them below the international average and far behind countries like South Korea, China, and India. Experts warn that this overly trusting attitude, especially in professional settings, can lead to serious consequences, urging users to treat AI as a helpful tool—not a flawless source.
Data breaches cripple UK retailers
Data breaches have also been a major story in Europe this week with a series of British retailers all hit by cyber-attacks. Following on from an attack on Marks & Spencer and Co-Op that caused widespread outages in stores and online, luxury department store Harrods was forced to restrict access to its online sites following an attempt to gain access to its systems.
Meanwhile in France, data protection authority CNIL reported that 2024 saw an unprecedented surge in data breaches, with 5,629 incidents—a 20% increase from the previous year. Notably, the number of breaches affecting over one million individuals doubled, impacting entities like France Travail, Free, and third-party payment operators. Common vulnerabilities exploited included compromised credentials, inadequate detection systems, and security lapses among subcontractors.
Finally, one of the UK’s iconic startup unicorns is no longer in British ownership. CNBC reports that food delivery company Deliveroo has agreed a £2.9bn takeover by its US rival DoorDash that will result in a near-£66m payday for its staff. The London-based delivery company, which was founded in 2013 by Will Shu and Greg Orlowski, received an offer worth 180p a share last month and on Tuesday its board recommended the deal to shareholders.
Former and current Deliveroo staff own 36.5m shares in the business between them, which would mean a £65.7m payout if the deal goes ahead. The takeover values Deliveroo, which employs about 4,000 people, at less than half the value at which it floated on the London Stock Exchange four years ago. Together, Deliveroo and DoorDash will cover 40 countries.
