Europe has a unique combination of multiple languages and cultures, abundant science and tech talent, and long-standing strengths in the manufacturing and services sectors. Taken together, these regional advantages render the transformative potential of generative AI especially compelling in a number of industries across the entire value chain—and for society at large. This McKinsey article highlights how Europe's unique characteristics and commitment to regulation provide a fertile ground for generative AI adoption and transformation across various industries, with potential economic and social benefits.