A “leading AI continent” – the EU publishes new AI action plan

The European Commission recently published its AI Continent Action Plan, which sets out the EU’s strategy for becoming a “leading AI continent”. The plan is part of the Commission’s attempts to boost the EU’s competitiveness, addressing issues identified in last September’s Draghi Report, and improve its technology sovereignty. 

Key measures envisaged by the plan include significant investment in computing infrastructure, a new Cloud and AI Development Act and a new Data Union Strategy. It also contains various measures to accelerate AI adoption in strategic sectors, boost AI talent, and provide guidance on AI Act compliance. 

As stated by the President of the European Commission at the AI Action Summit in Paris, the EU’s strategy on AI is to position itself as a global AI leader while simultaneously adopting a uniquely European approach. The action plan consists of five strategic areas: (1) computing infrastructure; (2) data; (3) skills; (4) accelerating AI adoption in key sectors; and (5) a simplification of the applicable rules. 

1. Computing Infrastructure
   
   AI Factories and Gigafactories: 
   The EU plans on strengthening the EuroHPC supercomputer infrastructure by building “AI Factories” – tech ecosystems with AI-optimised supercomputers, data resources, and programming/training facilities. These factories will prioritise access for EU users and users from certain other countries (such as EuroHPC participant countries like the UK). Some entities will be given priority access to computing resources, such as AI start-ups, scale-ups, SMEs, and certain EU research projects. 
   The EU also plans to invest in “AI Gigafactories” – large computing facilities designed to train complex AI models at scale and integrated with the AI Factories. They will be funded through public-private partnerships, combining EU and Member State direct grants with private investment, supported by InvestAI Facility – a new European fund of EUR 20 billion. A call for expression of interest was issued together with the AI Continent Action Plan, and the official call for the establishment of AI Gigafactories is to be published in Q4 2025. 
   
   Cloud and AI Development Act: 
   To address the EU’s reliance on foreign infrastructure, a new Cloud and AI Development Act will create the right conditions to incentivise investment in EU based cloud and edge capacity. This includes simplifying the permit process for data centre projects which meet certain environmental standards. In conjunction with the Data Act (which contains provisions on easier cloud switching – for more details, see our blog), it will aim to establish an EU marketplace for cloud capacity. The Commission is currently running a public consultation on the Cloud and AI Development Act. 
    
2. Data 
   The EU will propose a new Data Union Strategy to enhance interoperability and data availability and look at ways to simplify legislation so that organisations can share and use data for AI more easily. Various other measures will also be put in place, such as setting up data labs, and continuing the deployment of Common European Data Spaces.
    
3. Accelerating AI adoption in key sectors 
   Accelerating AI adoption in key sectors such as healthcare, manufacturing and public administration is also one of the EU’s priorities. It is expected to publish an Apply AI Strategy, which will propose concrete actions to that effect – the strategy is currently open for consultation. 
    
4. Skills
   The EU aims to ensure a strong AI talent base by reinforcing AI skills, including basic AI literacy throughout the EU, developing AI education, training and research, raising awareness of AI and attracting and retaining AI talent from outside the EU.
    
5. Regulatory compliance and simplification
   The plan recognises that the success of the EU’s AI Act will depend on how workable its rules are in practice. The EU is therefore launching an AI Act Service Desk to provide information on the AI Act and allow stakeholders (particularly smaller AI providers) to ask questions and receive tailored answers. Further, the AI regulatory sandboxes envisaged under the AI Act are expected to be operational by August 2026. The Commission will also step up action to accelerate the development of standards, which will play a key role in the application of the Act. 
   The consultation to the Apply AI Strategy also includes questions on challenges in the implementation of the AI Act, in order to identify any areas where regulatory uncertainty might hinder the development of AI. The results of the consultation will inform the EU’s assessment of whether current digital regulation hinders SMEs and midcaps. On a more granular level, they will feed into templates, guidance, webinars and training courses aimed to ease compliance. 

Comment

The next year will be a busy one for the EU as the various initiatives set out in the plan take effect. Interestingly, the approach taken by the EU is broadly similar to that envisaged in the UK Government’s response to the AI Opportunities Action Plan (outlined in our blog). Both sets of plans envisage investment in AI infrastructure, enabling access to quality data, and some form of regulation which balances safety concerns with the need for growth. However, even with the broad plans to ensure the regulatory burden does not impact AI innovation and adoption, the EU will likely retain a more stringent AI regime than the UK.