Artificial intelligence has moved beyond the realm of emerging technology to become a central economic driver, according to leaders gathered at South Summit 2026 in Madrid. The event, one of Europe's largest innovation and entrepreneurship gatherings, opened on 3 June with a clear message: the continent must unify its fragmented startup ecosystem to compete globally.
María Benjumea, president and founder of South Summit, set the tone during the opening session. "Artificial intelligence is not a threat but a tool for growth and improvement," she said, urging European policymakers to remove barriers that stifle startup expansion. "A start-up born in Spain must be able to see Europe as its natural home, not as 27 separate borders." Benjumea warned that many companies still feel compelled to relocate to the United States to scale, a trend she described as a drain on European talent and innovation.
The event, themed "AI Convergence," brings together more than 20,000 attendees, 4,900 startups, 2,000 investors, and 600 speakers. Benjumea highlighted the rapid shift in venture capital: AI attracted 30% of global venture capital investment three years ago, but now commands 61%, a change she called a "paradigm shift."
Spain's Digital Push
Spain's Minister for Digital Transformation and the Civil Service, Óscar López, used the platform to defend the country's digital strategy. "The OECD has just revised up the growth forecast for Spain from 2.1% to 2.2%. That is no coincidence: it is the result of a national commitment to digital and green transformation," he said. López noted that Spain has allocated €1.5 billion to its national AI strategy and boasts some of Europe's most advanced digital infrastructure, with over 96% fiber-optic coverage and nearly 94% 5G coverage.
López also claimed Spain is the first EU country to oversee and develop "trustworthy and open" AI, and that one million SMEs and self-employed workers have received support to digitize. This push aligns with broader European efforts to foster innovation, though critics argue that fragmented national policies still hinder cross-border scaling.
The event also launched the "AI Forum," a new space developed with IE University to help entrepreneurs build AI-based prototypes and business models in hours. "Artificial intelligence has radically shortened the distance between an idea and starting to build," Benjumea said. "It does not replace judgement or vision, but it does shorten timelines and turns an idea into something tangible." Lee Newman, dean of IE Business School, added that AI allows small teams to operate with capabilities once reserved for larger organizations. "The question is no longer whether it is possible, but how far they want to go," he said.
High-profile attendees include former Italian prime minister Enrico Letta, Google X founder Sebastian Thrun, and Female Invest co-founder Anna Hartvigsen. King Felipe VI, Madrid mayor José Luis Martínez-Almeida, and regional president Isabel Díaz Ayuso are also expected. Silicon Valley entrepreneur Kim Perell, who has backed over 100 startups, offered a pragmatic view: "Being an entrepreneur is not about having one big idea, but about the discipline to execute and keep moving forward even when you do not have all the answers."
The call for a unified European market echoes broader debates about the continent's competitiveness. As the Belgian poll shows shifting perceptions of global threats, and with Middle East conflict threatening EU jobs, the urgency for a cohesive tech strategy is clear. South Summit's message is that Europe must act now to avoid losing its brightest startups to other regions.
