For three decades, American workers have been pulling ahead of their European counterparts. Between 1995 and 2025, output per hour increased by 88% in the U.S. versus just 30% in the 20 countries using the euro. Prior research has linked this widening gap to greater diffusion of information and communication technologies (ICT) in the U.S. American firms invested more in computers and software, adopted them faster and more effectively, and reaped larger productivity gains as a result. Now, a new wave of technology is arriving. Advances in artificial intelligence (AI) have the potential to reshape work across many sectors of the economy. As with the ICT revolution, the economic impact of AI will depend critically on how quickly and broadly workers and firms adopt it. Will the U.S. again pull ahead, or will Europe be able to close the gap? To find out, we combined evidence from worker and firm surveys conducted across the U.S. and Europe in 2025 and 2026. Our findings, published in a new paper prepared for the Brookings Papers on Economic Activity Spring 2026 Conference, point to the following conclusions: AI adoption is substantially higher in the U.S. than it is in Europe, though there is wide variation across European countries. More broadly, richer countries adopt AI at higher rates; Industries with higher AI adoption have experienced faster productivity growth, both in Europe and the U.S. As of now, we do not find evidence that AI adoption is associated with job losses at the industry level.