The European Commission has introduced a comprehensive strategy aimed at accelerating the adoption of artificial intelligence (AI) across the bloc, while reducing reliance on non-EU regions in critical technological sectors.
Dubbed the AI Continent Action Plan, the initiative covers a broad range of areas including infrastructure development, cloud services, data access, workforce skills, and regulatory simplification. The goal is to transform traditional European industries into dynamic drivers of AI innovation, a vision first outlined by Commission President Ursula von der Leyen earlier this year.
At the official launch of the plan, EU Technology Commissioner Henna Virkkunen emphasized the importance of strengthening technological independence. “We’ve recognized AI as a key sector where Europe must enhance its capabilities, alongside areas like quantum computing and microchips,” she said.
While acknowledging the bloc’s collaborative ties with the United States—particularly in chip supply—Virkkunen stressed the need for homegrown resources. “We are open to cooperation, but building our own capacity is essential. That’s why we’re moving forward with a second Chips Act,” she added.
Virkkunen declined to comment on whether the ongoing EU-US trade tensions might lead to tariffs impacting the tech sector.
Building Europe’s AI Infrastructure
A central element of the plan involves creating large-scale AI gigafactories, which would house approximately 100,000 cutting-edge AI chips—four times more than those in development today. These facilities are intended to provide scalable computing power to smaller enterprises, boosting innovation across all levels of the economy.
The Commission has earmarked around €20 billion for this initiative, with the first gigafactory potentially launching as early as 2026.
Companies and stakeholders have been invited to contribute to shaping the plan through a public consultation on the Cloud and AI Development Act and the Apply AI strategy, open until June. These consultations aim to identify obstacles to broader AI implementation and refine the Commission’s approach.
Regulatory Progress and Future Targets
The European Union previously adopted the AI Act, a framework that categorizes AI tools based on the level of risk they pose to society. The regulation is being phased in and will be fully operational by 2027. One of the EU’s long-term goals is for 75% of companies in the bloc to integrate AI technologies into their operations by 2030.
Despite these efforts, recent data published by the Commission shows that Europe is trailing behind global competitors like the US in AI investment and innovation. One key issue highlighted is the burden of heavy regulation and bureaucratic hurdles, which has driven many tech startups to relocate abroad.
Between 2008 and 2021, Europe produced 147 unicorn companies—startups valued at over $1 billion—but 40 of them relocated, mostly to the United States.
With the new action plan, the European Commission hopes to reverse that trend by fostering a more innovation-friendly environment while ensuring Europe can independently support and scale its own AI ecosystem.
