EU Launches €1 Billion AI Plan to Become More Independent

Post by : Monika

The European Union (EU) has announced a major new plan to strengthen its use of artificial intelligence (AI) across industries that are essential to Europe’s economy and future growth. This new plan, worth €1 billion (about $1.1 billion), is designed to make Europe more independent in technology and to reduce its dependence on the United States and China.

The initiative, called “Apply AI”, was presented in Brussels on Tuesday. It follows earlier steps taken by the EU to control the safe use of AI while encouraging innovation. The plan will target important sectors like healthcare, energy, manufacturing, defense, and agriculture.

EU officials said this effort is part of Europe’s broader goal to build “technological sovereignty” — meaning Europe wants to have its own strong digital and AI industries instead of relying too much on foreign companies for software, data, and infrastructure.

Background: The EU’s Path Toward AI Sovereignty

Over the past decade, AI has become one of the most powerful technologies shaping global business and politics. Companies like OpenAI, Google, and Microsoft in the U.S., and Baidu and Alibaba in China, have invested billions into AI research. Europe, however, has lagged behind these two superpowers.

While European countries have strong universities and scientists, the region’s strict data and privacy laws — like the General Data Protection Regulation (GDPR) — made it difficult for companies to access large datasets needed to train AI models. As a result, many European startups struggled to compete globally.

Now, the EU wants to change that. By launching this €1 billion “Apply AI” plan, the bloc aims to speed up AI adoption in key industries, create more jobs, and make sure that European values such as transparency, privacy, and safety remain central to the technology’s development.

The Purpose of the “Apply AI” Strategy

The EU’s “Apply AI” strategy builds on a previous action plan introduced in April 2025, which focused on reducing the bureaucratic and financial barriers faced by small AI companies. That earlier plan also provided grants to support startups working on AI for education, health, and the environment.

The new plan, announced this week, goes much further. It focuses not only on supporting startups but also on bringing AI into traditional industries that have been slow to adopt digital technology.

European Commission President Ursula von der Leyen said during the announcement, “The future of AI should be made in Europe — by Europeans, for Europeans.” She added that AI must be used in ways that help people and create a fairer economy, rather than replacing workers or spreading misinformation.

Where the Money Will Go

The €1 billion investment will come mainly from two major EU programs — Horizon Europe and Digital Europe. These programs already fund technology research and digital transformation projects across the continent.

• Officials said the new AI funding will be distributed across several major areas:
• Healthcare – Using AI to help diagnose diseases earlier, improve hospital efficiency, and develop new medicines faster.
• Energy and Climate – Supporting AI projects that help manage renewable energy networks, reduce waste, and track pollution.
• Mobility and Automotive – Promoting self-driving technologies, smart traffic systems, and safety improvements in transport.
• Manufacturing and Industry – Building “smart factories” that use AI for quality control, maintenance, and production efficiency.
• Defense and Security – Strengthening cybersecurity systems and improving defense planning using AI.
• Agriculture and Food – Helping farmers predict weather, improve crop yields, and reduce fertilizer use.
• Culture and Media – Encouraging creative industries to use AI for design, film, and cultural preservation.

In addition, the EU will create AI screening centers for the healthcare sector. These centers will provide hospitals and universities with access to secure computing tools, so they can safely test AI systems before using them in real-life settings.

Europe’s Focus on “Responsible AI”

Unlike the U.S. and China, where companies can often experiment freely, the EU insists that AI must be ethical, safe, and human-centered. This is reflected in its AI Act, the first major law in the world to regulate artificial intelligence.

The AI Act classifies technologies according to their risk — from low to high — and imposes stricter rules on systems that affect people’s lives, such as facial recognition, hiring software, or medical diagnosis tools.

Although some companies say these laws make it harder to innovate, European leaders argue that responsible development is the best way to earn public trust and long-term success.

“We don’t want a future where AI is controlled by a few companies or countries,” said Thierry Breton, EU Commissioner for the Internal Market. “We want it to serve people, not the other way around.”

Funding, Partnerships, and Growth

The €1 billion plan is just the beginning. The European Commission expects that national governments and private businesses will contribute additional funds, possibly tripling the total investment to more than €3 billion.

The EU will also form partnerships between universities, technology centers, and large corporations to share knowledge and data securely. For instance, AI experts in France could work with manufacturing firms in Germany or healthcare startups in Finland under one European framework.

The goal is to make innovation faster and more unified across Europe — rather than fragmented by national borders.

Global Reactions and Comparison with Rivals

The U.S. and China have long dominated the AI landscape. American companies lead in developing powerful AI models and chips, while China has made rapid progress in areas like surveillance technology and robotics.

By contrast, the EU’s AI efforts have focused more on regulation and safety than speed. Some critics say this has slowed Europe’s progress, warning that too many rules could “regulate innovation to death.”

Leaders of major European companies, including Bosch and Siemens, have urged Brussels to support businesses more actively rather than only creating rules. They argue that Europe risks becoming a customer, not a creator, in the global AI economy.

However, others believe that Europe’s approach — combining innovation with strong ethical standards — could make it a global model for trustworthy AI.

Challenges Ahead

• Despite the optimism, the EU faces several serious challenges in making its AI plan successful:
• Funding Scale – While €1 billion is a large sum, it is much smaller than the hundreds of billions spent by the U.S. and China.
• Talent Shortage – Europe lacks enough skilled AI engineers and researchers, many of whom move abroad for higher pay.
• Fragmentation – Each EU member state has its own digital strategy, making coordination difficult.
• Private Investment – Europe still struggles to attract large-scale private venture capital compared to the U.S. tech industry.
• Global Competition – The pace of AI development in other countries is accelerating rapidly, which could make catching up difficult.
• Still, European officials are confident that the plan will mark the beginning of a stronger digital decade for Europe.

A Step Toward a More Independent Europe

For years, Europe has depended on U.S. cloud platforms, Chinese hardware, and foreign software systems. The new AI plan is part of a broader movement to change that dependence.

The EU has already launched projects to develop European cloud services (GAIA-X), build semiconductor plants (Chips Act), and improve cyber defense. Together, these efforts aim to make the continent more self-reliant.

By focusing on AI now, the EU hopes to take a leadership role in shaping how future technologies are developed and used worldwide.

What It Means for the Future

If successful, this €1 billion initiative could transform Europe’s industrial base and make its economies more competitive. It could also inspire a new generation of innovators who can create AI tools that follow European principles of fairness, sustainability, and human rights.

Experts say that while Europe may not win the AI race based on speed alone, it can still set global standards for responsible technology.

In the coming years, the EU plans to review the program’s results and possibly increase funding further if industries show positive outcomes.

The European Union’s new €1 billion AI plan is more than just an investment — it is a statement of independence. It shows that Europe is determined to shape its own technological destiny rather than follow the lead of others.

By combining innovation, regulation, and collaboration, the EU hopes to create a future where AI works for people, not just profits. While challenges remain, this effort could mark the start of Europe’s rise as a major force in the global AI landscape.

• As Ursula von der Leyen said, “We want European technology that carries European values.”
• And this time, Europe seems ready to make that vision a reality.