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New JRC report on Generative AI (potential and risks)

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02 July 2025

The European Commission's JRC has published ‘Generative AI Outlook’, which highlights the GenAI’s transformative potential for innovation, productivity, and societal change. But it also stresses that its rapid development poses cross-cutting risks – including amplifying misinformation, algorithmic bias, job disruption, and privacy concerns – that demand urgent attention. 

To harness GenAI's benefits while safeguarding fundamental rights, the report emphasises the need for a multidisciplinary and strategic policy approach. It calls for close alignment with EU laws such as the AI Act and data legislation, as well as EU AI innovation policies to ensure GenAI remains trustworthy, inclusive, and fully aligned with democratic values and EU laws. 

The Outlook report  

  • begins with an overview of the technological aspects of GenAI, detailing their current capabilities and outlining;  

  • then focuses on economic implications, examining how GenAI can transform industry dynamics and necessitate adaptation of skills and strategies.  

  • the societal impact of GenAI is also addressed, with focus on both the opportunities for inclusivity and the risks of bias and over-reliance.  

  • considering these challenges, the regulatory framework section outlines the EU’s current legislative framework, such as the AI Act and horizontal Data legislation to promote trustworthy and transparent AI practices.  

  • finally, sector-specific ‘deep dives’ examine the opportunities and challenges that GenAI presents. This section underscores the need for careful management and strategic policy interventions to maximize its potential benefits while mitigating the risks.  

  • concludes that GenAI has the potential to bring significant social and economic impact in the EU, and that a comprehensive and nuanced policy approach is needed to navigate the challenges and opportunities while ensuring that technological developments are fully aligned with democratic values and EU legal framework. 

Available to download:  https://publications.jrc.ec.europa.eu/repository/handle/JRC142598  

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