EU Reveals Plans for AI Technology Sovereignty

Artificial Intelligence & Machine Learning,
Next-Generation Technologies & Secure Development

AI Strategies Aim to Strengthen Global AI Position

EU Unveils AI Tech Sovereignty Plans
Henna Virkkunen, European Commissioner for Technological Sovereignty, Security, and Democracy, during an Aug. 10, 2025 European Parliament session. (Image: Philippe Stirnweiss/European Union)

The European Union has committed 1 billion euros to advance its artificial intelligence agenda, addressing growing concerns over the bloc’s lag in research and technological adoption. This funding aims to establish a robust continental framework for AI development in response to geopolitical pressures, particularly from the U.S. and China.

The European Commission has recently unveiled two strategic frameworks—the Apply AI Strategy and the AI in Science Strategy—intended to position Europe at the forefront of AI-driven scientific innovation. “By prioritizing AI while emphasizing safety, we aim to accelerate advancements across various sectors, including robotics, healthcare, energy, and automotive,” stated European Commission President Ursula von der Leyen.

The EU’s historical reliance on foreign digital technologies has fostered a desire for greater technological autonomy. Challenges such as insufficient R&D investment, limited semiconductor manufacturing capabilities, and risk-averse investor behavior have hindered Europe’s innovation landscape. According to estimates, the EU accounts for less than 5% of global computational power, starkly contrasted with 75% for the United States and 15% for China. To regain leadership in AI, the EU must enhance its domestic technological infrastructure, as highlighted by the Commission.

The Apply AI Strategy allocates approximately $1.16 billion to areas like healthcare, energy, mobility, manufacturing, and construction. This initiative aims to expedite product development and bolster AI skills within the EU workforce.

Additionally, the AI in Science Strategy proposes the establishment of a new virtual institute called the Resource for AI Science, designed to coordinate AI research and promote its integration across various scientific disciplines.

These initiatives are expected to yield tangible benefits for EU citizens, strengthen technological competitiveness, and uphold sovereignty, according to Henna Virkkunen, the Commissioner for Technological Sovereignty. However, the EU’s comprehensive regulatory approach to AI has faced criticism for potentially stifling innovation and driving talent outside Europe, raising questions about the effectiveness of the AI Act.

Roger Dassen, CFO at ASML, expressed concerns regarding the stringent regulatory framework, stating, “What hinders AI advancement in Europe? The focus on regulation often overshadows innovation.” He noted that talented individuals frequently seek opportunities in regions like Silicon Valley where the regulatory environment is more permissive.

The European Commission maintains that its regulatory efforts, supported by recent funding, will foster collaboration between EU entities and technology firms, enhancing the safety, security, and trustworthiness of AI systems. Proponents assert that these governance measures are essential for ensuring transparency and accountability within AI technologies, which have been criticized for their opaque data practices.

Maximilian Gahntz from the Mozilla Foundation emphasized the need for clarity in data utilization within AI systems, stating, “The AI ecosystem is often characterized by layers of opacity. The AI Act provides an opportunity to illuminate these crucial aspects and improve understanding of AI’s operational dynamics.”

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