The European Union is preparing a sweeping plan to strengthen its artificial intelligence market and broader AI ecosystem while reducing reliance on American and Chinese technologies. The draft strategy, titled “Apply AI”, outlines steps to build Europe’s own artificial intelligence infrastructure and promote “technological sovereignty” amid growing global competition.
Building a Sovereign Artificial Intelligence Ecosystem
The European Commission aims to establish a comprehensive “EU AI stack,” including computing infrastructure, data platforms, and generative AI models developed within the bloc. The goal is to ensure that Europe’s AI systems, covering defense, healthcare, and public administration, are not dependent on foreign providers.
Officials stress the importance of investing in local cloud computing, semiconductor production, and open-source AI tools to safeguard data and reduce geopolitical risk. Dependence on external suppliers, they warn, could be exploited in times of global tension.
Achieving this vision also depends on progress in related areas, such as the Savings and Investments Union, reducing reliance on foreign technologies, and legislative action through the European Parliament, which will scrutinize the Commission’s initiatives and shape upcoming laws like the Cloud and AI Development Act.
Europe Invests €1 Billion to Boost Artificial Intelligence Capabilities
Brussels plans to redirect up to €1 billion from EU programs, including Horizon Europe and Digital Europe, to support AI startups, federated data networks, and large-scale model training within the region. These initiatives are likely to fuel growth in the European AI market. European Commission President Ursula von der Leyen emphasized that Europe risks falling behind the U.S. and China if it focuses solely on regulation rather than innovation.
The EU also seeks to enhance cooperation between member states, pooling resources and expertise to create cross-border AI infrastructure for the public and private sectors.
Europe Faces Hurdles in AI Independence
Experts note challenges, including shortages of high-end chips, limited AI talent, and fragmented digital markets. Many European AI firms still rely on U.S. cloud providers such as Amazon Web Services and Microsoft Azure. Analysts warn that full independence will require years of coordinated investment and effort.
Adoption of AI across Europe is uneven. Eurostat reports that fewer than 14% of EU enterprises used AI in 2024, with a notable gap between large companies (41%) and SMEs (11%). By comparison, 58% of small U.S. businesses were using generative AI as of August 2025.
The Artificial Intelligence Continent Action Plan: Progress So Far
The AI Continent Action Plan, published on April 9, 2025, lays out a roadmap to establish the EU as a leading AI hub. It focuses on five objectives:
- Building large-scale AI data and computing infrastructure
- Improving access to data
- Fostering innovation and accelerating AI adoption in strategic EU sectors
- Strengthening AI skills and talent
- Simplifying regulatory compliance
Officials view the plan as a decisive step toward combining strategy with tangible action, aiming to position Europe as a global leader in the artificial intelligence market.
